QNB Group: Financial Results for the Nine Months Ended 30 September 2018
QNB Group, the biggest financial institution Middle East as well as Africa (MEA) region, introduced its outcomes for the nine months ended 30 September 2018. For the 9 months ended 30 September 2018, Net Revenue got to QAR10.8 billion (USD3.0 billion), up by 6% compared to same duration last year, despite the effect of the Turkish Lira devaluation.
Total assets increased to QAR853 billion (USD234 billion), up by 8% from September 2017.The key driver of total assets growth was from loans and advances which grew by 4% to reach QAR604 billion (USD166 billion). This was mainly funded by customer deposits which increased by 7% to reach QAR615 billion (USD169 billion) from September 2017. The growth of the Group assets and liabilities has been partly affected by the devaluation in the Turkish Lira. Despite the devaluation impact, QNBs strong asset liability management capabilities helped QNB Group to improve its loans to deposits ratio to 98.3% as at 30 September 2018.
The Group's drive for operational efficiency is producing cost-savings in addition to lasting earnings creating resources, enabling the Team to enhance the efficiency proportion (cost to income proportion) to 26%, from 29% last year, which is taken into consideration one of the most effective ratios among large financial institutions in the MEA area.
Robust credit history high quality is underpinned by non-performing fundings proportion of 1.8% as at 30 September 2018, a degree considered one of the lowest among banks in the MEA region. The Group's traditional policy in regard to provisioning resulted in the insurance coverage proportion at 106% as at 30 September 2018.
Funding Adequacy Proportion (AUTO) as at 30 September 2018 totaled up to 15.6%, greater than the regulative minimum requirements of the Qatar Central Bank as well as Basel Committee. Money headwinds in our core markets had restricted impact on the CAR.
QNB's effective financing from the worldwide markets throughout the year which includes, among others, (1) capital market issuances of USD560 million (AUD700 million) with a 5 and 10-year maturity in Australia and (2) USD720 million bonds with 30 year maturity in Taiwan. Thisreflects the Team's success in expanding funding sources by getting in brand-new debt markets, sourcing lasting long-lasting financing, expanding the maturation profile of funding resources and also the trust fund of global investors in the solid economic setting of QNB Team and its strategy.
During the year, Fitch Rankings and also Moody's have changed the Outlook to Steady because of successful monitoring of the effect from the blockade. Additionally QNB remains the highest-rated financial institution in Qatar as well as among the highest-rated financial institutions on the planet from the significant rating agencies of Moody's, Standard & Poors and Fitch Ratings.
QNB Group serves a customer base of greater than 23 million customers with greater than 29,000 staff sources operating from greater than 1,200 areas and also 4,300 ATMs.
