Qatar National Bank reveals 7% increase in Q1 profit

QNB/X

Qatar National Bank’s (QNB) net profit increased seven percent year on year to just over QR4 billion ($1 billion) in the first quarter of 2023.

Operating income rose 11 percent annually to above QR10 billion, maintaining strong growth across various income streams.

The bank’s net interest income increased by 12 percent to QR8 billion.

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“Overall, results were pretty solid,” banking analyst at EFG Hermes Elena Sanchez-Cabezudo told Reuters.

Total assets were more than QR1 trillion as of the end of March, up five percent year on year, driven by a seven percent growth in loans and advances.

Customer deposits reached QR880 billion. The lender’s loans-to-deposits ratio stood at 98.6 percent by the end of the first quarter.

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In addition, the ratio of non-performing loans to gross loans stood just short of 3 percent, one of the lowest among financial institutions in the Middle East and Africa region.

Loan loss coverage ratio stood at 98 percent, reflecting the prudent strategy towards non-performing loans.       

In February, experts told AGBI that GCC banks may be forced to look overseas to fulfil growth ambitions as home markets become increasingly saturated.

GCC banks are highly concentrated in their local countries, with 45 percent of their branches situated in the region. 

Experts say Islamic banking could offer a way into new markets for GCC players. Refinitiv forecasts the value of the global Islamic finance industry could reach $6 trillion by 2026.