Qatar National Bank, the Gulf state’s biggest lender, made a record net profit of QAR8.3 billion last year.
The GCC’s biggest lender, Qatar National Bank (QNB), posted a record 11.1 per cent year-on-year increase in 2012 net profit to reach QAR8.3 billion, the bank announced on Sunday.
Total assets increased by 21.5 per cent to reach QAR367 billion, the highest ever achieved by the lender, it said in a statement. Asset growth was driven by a 28.9 per cent rise in loans and advances to reach QAR250 billion.
Customer deposits recorded a growth of 34.9 per cent to QAR270 billion, with the loans to deposits ratio reaching 92.6 per cent at year-end 2012. The bank’s ratio of non-performing loans to total loans stood at 1.3 per cent.
Total operating income increased to QAR11.5 billion, up 12.8 per cent compared to 2011, while net interest income increased by 17.3 per cent to QAR9.1 billion.
“During 2012, the bank continued to focus on diversifying its sources of liquidity and extending the maturity profile of its funding,” QNB said.
QNB launched two $1 billion issuances under its Euro Medium Term Note Programme and also closed a $1.8 billion three year term loan facility last year.
The bank also launched the QNB Debt Fund and the Brazil, Russia, India, China, and Qatar (BRICQ) Fund.
The bank’s capital adequacy ratio reached 21 per cent at year-end 2012, higher than the regulatory requirements of QCB and the Basil Committee.
“The bank is keen to maintain a strong capitalisation in order to support future strategic plans,” it said.
The company’s board is recommending the distribution of a cash dividend of 60 per cent of the nominal share value (QAR6.0 per share) to shareholders, QNB said. Earnings per share increased to QAR11.9, compared with QR11.3 in 2011.
Last year, the rapidly expanding bank announced the acquisition of a 77.17 per cent stake in National Société Générale Bank (NSGB), the second largest private bank in Egypt.
The bank also concluded the acquisition of a 49 per cent stake in the Bank of Commerce and Development in Libya and increased its stake in UAE-based Commercial Bank International (CBI) from 24 per cent to 40 per cent and in Iraq-based Mansour Bank from 23 per cent to 51 per cent.
QNB, which operates in 24 countries, also announced plans to increase its staff from 8,800 to 13000, upon the completion of the regulatory approvals to acquire NSGB.