QNB Group, the leading bank in the Middle East and Africa (MEA) region, reported that its net profit reached QAR6.2 billion, ($1.7 billion) in the six months ended June 30, 2016, or an increase of 12% compared to last year. Total assets increased by 36% from June 2015 to reach QAR692 billion ($190 billion), the highest ever achieved by the Group. On June 15, 2016, QNB Group completed the acquisition of 99.81% stake in Finansbank A.Ş. – Turkey. The growth in assets was driven by loans and advances which grew by 39% to reach QAR497 billion ($136 billion). At the same time QNB Group increased customer funding by 29% to QAR488 billion ($134 billion). This led to the Group's loans to deposit ratio reaching 101.7%. QNB Group's prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 30%, which is considered one of the best ratios among large financial institutions in the region. The Group was able to maintain the ratio of non-performing loans to gross loans at 1.8%, a level considered one of the lowest among large banks in the MEA region, 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 127% in 30 June 2016. Total equity increased by 27% from June 2015 to reach QAR73 billion ($20 billion) as at 30 June 2016. Earnings per Share reached QAR7.4 ($2.0), compared to QAR6.7 in June 2015. QNB Group successfully raised QAR 10 billion in Additional Tier 1 Perpetual Capital Notes, to strengthen the Group's Capital Adequacy Ratios and to support future growth across the Group. Capital Adequacy Ratio (CAR) calculated as per the QCB and Basel III requirements stood at 14.2% as of June 30, 2016, higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee. After completing the acquisition of Finansbank during June 2016, QNB Group solidified its position as one of the strongest rated financial institutions in the MEA region. This is a result of QNB Group's strong financial position, high quality of its assets and its leading position in the financial sector. Based on the Group's continuous strong performance and its expanding international presence, QNB maintained its position as the most valuable bank brand in the MEA region. This continues to recognise QNB's position as the leading financial institution across the MEA region and the value inherent in the QNB brand. QNB Group is present, through its subsidiaries and associate companies in more than 30 countries across three continents providing a comprehensive range of products and services.
