DOHA, Qatar--()--QNB Group, one of the leading financial institutions in the Middle East and North Africa, continued to record robust growth in profitability, with Net Profit for 2011 exceeding QR7.5 billion, up by 32% compared to 2010.
The Board of Directors is recommending to the General Assembly the distribution of a cash dividend of 40% of the nominal share value (QR4.0 per share) and a bonus shares of 10% of share capital (One share for every 10 shares). The financial results for 2011 along with the profit distributions are subject to Qatar Central Bank approval.
Total assets increased by 35% to reach QR302 billion, the highest ever achieved by the Group. This was the result of a strong growth rate of 47% in loans and advances to reach QR194 billion. Meanwhile, customer deposits recorded solid growth of 21% to QR200 billion.
The Bank was able to maintain the ratio of non-performing loans to total loans at 1.1%, a level considered to be the lowest amongst banks in the Middle East and North Africa. Provisions were conservatively managed, as the coverage ratio reached 119%.
The efficiency ratio (cost to income ratio) improved to 15.7%, compared to 17.0% in 2010, one of the best ratios among financial institutions in the Middle East and North Africa.
QNB Group was able to record a strong return to shareholders, with the return on average shareholder’s equity reaching 24.8% in 2011.
QNB Group's capital adequacy ratio increased to 22.0% in 2011, far higher than the regulatory requirements of Qatar Central Bank and Basel Committee.
QNB Group's leading role in the banking sector and the high quality of its assets, along with its capabilities to achieve sustained growth in all activities, were demonstrated clearly in its credit rating, with Standard & Poor's, Fitch and Moody's affirming the Bank’s ratings during 2011, which are among the highest in the region. Also, Capital Intelligence upgraded the Bank's Financial Strength Rating from A+ to AA- and affirmed all other ratings in recognition of QNB's sound financial position, high asset quality and leading role in the banking sector.
In 2011, QNB Group completed the acquisition of a controlling stake of 70% in Bank Kesawan in Indonesia, and launched its operations in Lebanon and South Sudan. With these expansions, QNB Group currently operating in 24 countries around the world through its network, subsidiaries and associate companies, and employs about 7,000 staff operating from 334 branch and offices that are supported by an ATM network that exceeds 600 machines.
A new 5-year strategic plan was approved which aims to make QNB Group a Middle East and Africa Icon. The new strategy aims to maintain the Group’s position as the leading bank in the area by expanding and improving operations, diversifying income sources, and achieving a high return to shareholders.
*Source: ME NewsWire
The press release can be viewed online: http://www.me-newswire.net/news/4745/en