QNB, the country’s largest bank by assets, has reported a healthy 54% growth in first half net profit to QR1.86bn.
The surge in net profitability has been mainly due to faster growth in net fee income, gains from financial investments and other operating revenues.
QNB, in which Qatar Investment Authority holds 50% stake, yesterday bucked the trend with its shares gaining 1.57% to QR231.10. As much as 147,036 shares worth QR34.31mn changed hands across 177 transactions.
In the second quarter (April-June), the bank’s net profit showed a huge 70% jump to QR939.74mn on doubled gains from its financial investments.
Its net loan portfolio expanded by 60% to QR84.28bn, while deposits grew much faster at 80% to QR86.87bn in the first half of this year.
Of the QR84.28bn net loans and advances, conventional banking contributed QR78.76bn and Islamic financing QR6.69bn.
Its net interest income rose by 23% to QR1.11bn, while net fees and commission income grew faster by 41% to QR505.05mn in the first six months of this year.
Net gains from financial investments jumped more than three-fold to QR259.23mn; other operating income by about 16-fold to QR25.41mn; dividend income gained 16% to QR135.24mn; net gains from dealing in foreign currencies by 51% to QR158.61mn and income from Islamic financing by 15% to QR251.07mn.
Moreover, there was a fresh income of QR98.33mn as its share in profit of associated. Thus, the bank’s net operating income showed 43% gains to QR2.54bn, while general and administrative expenses were up 29% to QR503.95mn.
However, there was a substantial QR39.05mn of net impairment gains in the first half of this year compared with losses of QR65.66mn in the previous year period.
QNB’s total assets more than doubled to QR152.64bn, which also comprised cash and deposits worth QR18.05bn parked with central banks; QR29.57bn of due from banks and other financial institutions; financial investments of QR15.30bn; investments worth QR2.92bn in associates; other assets worth QR1.72bn and property and equipment valued at QR797.05mn.
Of the QR152.64bn assets, conventional banking accounted for QR141.97bn; Islamic banking (QR14.35bn) and wealth management (QR4.88bn).
Its earnings-per-share was QR8 on a total shareholders’ equity of QR18.98bn.
The bank had earlier this year concluded its second stage of rights issue, which fetched it QR7.7bn, almost three times more than what it intended to raise from shareholders as part of its expansion.
QNB this year acquired 50% stake in Tunisian-Qatari bank as part of consolidation in the regional banking industry. It had earlier picked up stake in the UK-based Ansbacher Group having presence in the British and European markets.
The London-based Ansbacher, QNB’s Wealth Management and Private Banking subsidiary, operates in Switzerland, Channel Islands, the Bahamas, Dubai International Financial Center and Qatar Financial Center.
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