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GCC’s biggest bank QNB posts 10% jump in full-year net profit

The board proposed a cash dividend of 37 per cent of the nominal share value (QAR0.37 per share).

January 14, 2025

GCC’s biggest bank QNB posts 10% jump in full-year net profit

Image credit: Jozef Durok/ Getty Images

Qatar National Bank (QNB Group), the biggest GCC lender by assets, said on Monday that its full-year net profit soared by 8 per cent to reach $4.58bn (QAR16.7bn) in 2024, citing its robust and consistent performance amid a surge in operating income and total assets.

Net profit attributable to the Qatari lender’s equity holders in the fourth quarter was QAR4bn, up from QAR3.6bn for the same period a year ago.

QNB’s operating income rose by 6 per cent to reach QAR41.3bn in the 12 months to December 31, supported by steady “growth across a range of revenue sources”.

The banking group said its loans and advances reached QAR911bn, up 7 per cent from the previous year. The growth in QNB’s loan portfolio helped the bank increase its total assets to almost QAR1.29tn, up 5 per cent from December 2023.

QNB’s full-year deposit base jumped 3 per cent to QAR887bn, up 3 per cent from December 2023, driven by the bank’s diversified customer base, while the loan deposit ratio stood at 96.8 per cent.

Its capital adequacy ratio amounted to 19.2 per cent as at December 31, 2024, while its liquidity coverage ratio and net stable funding ratio expanded by 179 per cent and 101 per cent, respectively. The ratio of non-performing loans (NPL) to gross loans stood at 2.8 per cent, reflecting the high quality of QNB’s loan book and the effective management of credit risk.

QNB’s board proposed a cash dividend of 37 per cent of the nominal share value (QAR0.37 per share).

Meanwhile, QNB’s board approved its QAR2.9bn share buyback plan in September and commenced the share repurchase in October.

The bank said the stock repurchase is a confidence-building measure that is expected to improve market liquidity and enhance returns. QNB has completed a share repurchase of 38.33 million ordinary shares, amounting to QAR661 million, as of December 2024. The bank will initiate a new share repurchase program beginning January 14, 2025.