2022: Qatar’s QNB reports 9% rise in net profit to hit $3.9bn

QNB, Qatar’s largest lender, has reported a net profit of QR14.3bn ($3.9bn) after the impact of hyperinflation for the year ending December 31, 2022.

The net profit rose 9 per cent compared to same period last year.

QNB Group’s highlights for the financial statements for the year ended 31 December 2022https://t.co/EGyWOIzaOO#QNB #QNBGroup #QNBEcon pic.twitter.com/LcyTcDuGBa

— QNBGroup (@QNBGroup) January 11, 2023

Meanwhile, the bank’s net profit before the impact of hyperinflation for 2022 reached QR16.1bn ($4.4bn), increasing 22 per cent compared to the same period last year.

The lender’s board of directors recommended the distribution of a cash dividend of 60 per cent of the nominal share value (QR0.60 per share). The annual financial results for 2022 along with the proposed profit distribution are subject to Qatar Central Bank (QCB) approval, the bank said in a statement.

Operating income increased by 24 per cent to reach QR35.1bn ($9.6bn), while its total assets reached QR1.189tn ($327bn), spiking 9 per cent from December 31, 2021, mainly driven by growth in loans and advances by 6 per cent to reach QAR808bn ($222bn). Customer deposits grew by 7 per cent to reach QR842bn ($231bn) from December 31, 2021.

#QNB Group’s Key Financial Indicators; Customer Deposits reached QAR842 billion, up by 7% from December 2021#QNBGroup #QNBEcon pic.twitter.com/KAraLp9r6Z

— QNBGroup (@QNBGroup) January 11, 2023

The ratio of non-performing loans to gross loans reached 2.9 per cent as at December 31, 2022. The QNB Group set aside QR8.8bn ($2.4bn) during the year as a precaution for potential loan losses, helping the group maintain its coverage ratio at 99 per cent.

Total equity increased to QR106bn ($29bn), up by 6 per cent from December 2021, while earnings per share reached QR1.44 ($0.40), the statement added.

Group capital adequacy ratio (CAR) as at December 31, 2022 amounted to 19.6 per cent higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee.