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 QAR5.6 billion ($1.5 billion) in the first six months of 2015, up by 10.2% compared to last year, the bank said in a statement Wednesday. The Group's prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 21.0%, which is considered one of the best ratios among financial institutions in the region. Total assets increased by 9.7% from June 2014 to reach QAR511 billion ($140.2 billion), the highest ever achieved by the Group. This was the result of a strong growth rate of 9.2% in loans and advances to reach QAR356 billion ($97.8 billion). The Group was able to maintain the ratio of non-performing loans to gross loans at 1.5%, 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 133% in June 2015. At the same time QNB Group increased customer funding by 10.4% to QAR381 billion ($104.7 billion). This led to the Group's loan to deposit ratio reaching 93%. Total Equity increased by 7.4% from June 2014 to reach QAR58 billion ($15.8 billion) as at 30 June 2015. Earnings per Share reached QAR8.0 ($2.2), compared to QAR7.2 in June 2014. Capital adequacy ratio (CAR) calculated as per the QCB and Basel III requirements stood at 14.4% as at 30 June 2015, higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee. The Group is keen to maintain a strong capitalization in order to support future strategic plans. During March 2015, Fitch Rating agency upgraded QNB Group to AA-/F1+ on the back of the strength of State of Qatar's sovereign rating. QNB Group has maintained its credit rating from all other rating agencies and is considered one of the highest in the region. This is a result of QNB Group's strong financial position, high quality of its assets and leading position in the financial sector. As a result of the Group's high credit ratings and outstanding asset quality, it was selected as one of the world's 50 safest financial institutions by Global Finance. Based on the Group's continuous strong performance and its expanding international presence, QNB improved its ranking within the Brand Finance Global Top 500 Banking Survey 2015 and is now the biggest bank brand by value in The Middle East and Africa. The QNB Ranking moved significantly from 101st (Brand Value: $1.8 billion in 2014) to 79th (Brand Value: $2.6 billion in 2015) further recognizing QNB's improved standing and strong brand recognition. QNB Group is present, through its subsidiaries and associate companies, in more than 27 countries and 3 continents providing a comprehensive range of products and services. The total number of staff is more than 14,900 operating from over 630 locations and with an ATM network of more than 1,340 machines. — SG
