JEDDAH – QNB Group, one of the world's strongest banks and the leading bank in the Middle East and North Africa, posted net profit of QR5.1 billion ($1.4 billion) in the first six months ended June 30, 2014, an increase of 7percent compared to last year. The group's prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 21.5 percent, which is considered one of the best ratios among financial institutions in the region. Total assets increased by 7.9 percent from June 2013 to reach QR466 billion ($127.9 billion), the highest ever achieved by the Group. This was the result of a strong growth rate of 10.1 percent in loans and advances to reach QR326 billion ($89.6 billion). 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 123 percent in June 2014. At the same time QNB Group increased customer funding by 5.8 percent to QR345 billion ($94.8 billion). This led to the group's loan to deposit ratio reaching 95 percent. Total equity increased by 10.4 percent from June 2013 to reach QR54 billion ($14.7 billion) as at 30 June 2014. Earnings per Share reached QR7.2 ($2.0), compared to QR6.8 in June 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 15.9 percent as at 30 June 2014, higher than the regulatory minimum requirements of the Qatar Central Bank. Based on the group's continuous strong performance and the expanding international presence, the Group improved its ranking as the most valuable brand in the MENA region, with a world ranking of 101 (Brand Value: $1.81 billion) from 120 in 2012 (Brand Value: $1.31 billion). — SG
