QNB Group, a strategic partner of Ecobank and one of the world’s strongest banks and the leading bank in the Middle East and North Africa, has announced a Cash Dividends of 75 percent of the nominal value of the share as its Net Profit reached QAR10.5bn, up by 10.3 percent in 2014 from December 2013.
In the second half of 2014, QNB acquired a 19.4 percent stake (both ordinary and QNB convertible preference shares) in Ecobank Transnational Incorporated, the leading pan-African bank.
According to the bank, this was driven by operating income, which increased to QAR15.8bn, up by 7.3 percent compared to December 2013, demonstrating QNB Group’s success in achieving strong growth across the range of revenue sources.
Net interest income increased by 6.1 percent to reach QAR12.3bn, with net fee and commission income and net gain from foreign exchange reaching QAR2.1bn and QAR815m, respectively, reflecting success in diversifying sources of income.
The Group’s prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 20.8 percent, which is considered one of the best ratios among financial institutions in the region.
Total assets increased by 9.7 percent from December 2013 to reach QAR486bn, the highest ever achieved by the Group. This was the result of a strong growth rate of 8.8 percent in loans and advances to reach QAR338bn.
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The Group was able to maintain the ratio of non-performing loans to gross loans at 1.6 percent, a level considered one of the lowest amongst banks in the Middle East and Africa, reflecting the high quality of the Group’s loan book and the effective management of credit risk. The Group’s conservative policy in regard to provisioning continued with the coverage ratio reaching 124 percent in December 2014.
At the same time QNB Group increased customer funding by 7.4 percent to QAR360bn. This led to the Group’s loan to deposit ratio reaching 94 percent.
Total Equity increased by 7.9 percent from December 2013 to reach QAR58bn as at 31st December 2014. Earnings per Share reached QAR14.9, compared to QAR13.5 in December 2013.
The Group started implementing updated QCB and Basel III requirements for the calculation of the Capital Adequacy Ratio (CAR) from early 2014. The ratio stood at 16.2 percent as at 31December 2014, higher than the regulatory minimum requirements of the Qatar Central Bank. The Group is keen to maintain a strong capitalisation in order to support future strategic plans.
