Qatar National Bank’s Q3 profit up 14% on higher interest income

REUTERS

Qatar National Bank (QNB), the Gulf’s largest lender by assets, said on Monday its third-quarter net profit was up nearly 14 percent as net interest income jumped nearly a third.

Net profit attributable to QNB’s equity holders in the three months to the end of September was QR 3.97 billion ($1.09 billion) from QR 3.48 billion in the year-prior period.

EFG Hermes had estimated net profit of QR 3.826 billion in the quarter.

Net interest income in the third quarter was QR 7.69 billion, against almost QR 5.8 billion a year earlier. QNB’s operating profit was at QR 9.18 billion from QR 7.04 billion a year prior.

The bank had QR 1.135 trillion in assets at the end of September, up five percent from QR 1.084 trillion a year before.

For the nine months to end-September, QNB said its net profit was up seven percent to QR 11 billion after the impact of hyperinflation.

QNB said hyperinflation accounting adjustments relating to its operations in Turkey had an “incremental impact” on its capital of about QR 3.5 billion. Its capital adequacy ratio was 19 percent at end-September from 18.6 percent a year prior.

Its non-performing loans ratio inched up to 2.4 percent from 2.3 percent at the end of September 2021.