QNB Group first quarter net profit rises to QR4.3bn

11/04/2025 07:57 AST

QNB Group, one of the largest financial institutions in the Middle East and Africa (MEA) region, posted a first quarter (Q1, 2025) net profit of QR4.3bn ($1.2bn), an increase of 3% compared to same period last year. Net profit before the impact of 'Pillar Two' taxes reached QR4.6bn ($1.3bn), an increase of 11% compared to March 2024. Operating income increased by 6% to reach QR11bn ($3bn) reflecting the QNB Group's ability to maintain successful growth across a range of revenue sources. Total assets (as on March 31, 2025) reached QR1,324bn ($364bn) an increase of 7% from March 31, 2024, which QNB said was "mainly driven" by a 9% growth in loans and advances to reach QR947bn ($260bn). Customer deposits increased by 6% to reach QR930bn ($256bn) from March 31, 2024 due to "successful diversification" of deposit generation. QNB Group's efficiency (cost to income) ratio stood at 22.7%, one of the best ratios among large financial institutions in the MEA region. The ratio of non-performing loans to gross loans stood at 2.8% as at 31 March 2025, one of the lowest amongst financial institutions in the MEA region, reflecting the high quality of the Group's loan book and the effective management of credit risk. In addition, loan loss coverage ratio stood at 100%, which reflects the "prudent approach" adopted by the Group towards non-performing loans. Total equity increased to QR114bn ($31bn), up by 8% from March 2024. Earnings per share reached QR0.43 ($0.12). QNB Group's Capital Adequacy Ratio (CAR) as on March 31, 2025 amounted to 19.3%. Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) as on March 31, 2025 amounted to 160% and 105% respectively. These ratios are higher than the regulatory minimum requirements of the QCB and Basel III reforms requirements. QNB Group's presence spans some 28 countries across three continents operating from approximately 900 locations, over 5,000 ATMs supported by more than 31,000 staff.

Gulf Times