(The Group’s Comments) QNB Net Profits Up by 4% to QAR 7.4 Bn. in First Half of 2019

July 11, 2019

Net Profits: Qatar National Bank (QNB) reported a profit growth of 3.88% for the first half of 2019, reaching QAR 7,373 million, compared to QAR 7,098 million for the same period in 2018. The bank’s earnings per share (EPS) amounted to QAR 0.74 in this first half, similar to the corresponding period of 2018. This stability of EPS is due to the increase in interest paid to additional capital. Also, in the second half of 2018, the Bank had issued an additional portion of its capital to support the solvency ratio by QAR 10 billion. As for QNB’s Q2 earnings, they increased by about 3.77%.

Comprehensive Income: QNB recorded an impairment loss of QAR 1,160 million in the first half of 2019, versus an impairment loss of QAR 1,160 million for the corresponding period of 2018. These impairment losses are relates to foreign exchange differences, changes in fair value of cash hedges and valuation differences for foreign investments.

Operating Revenues: increased by QAR 406 million or 3.4% to reach QAR 12,328 million. This improvement was due to the increase in the interest income and fees by 3.22% to QAR 364 million, and the rise in foreign exchange profits by QAR 52 million.

Operating Expenses: increased by 5.30% or QAR 234.5 million, compared to the first half of 2018. However, increased expenses remained lower than revenues, which resulted in improved profit for the period.

Loans & Deposits: During the first half of 2019, the loan portfolio grew by 4.60%, which is similar to the growth in customer deposits that increased by 4.63%. The ratio of loans to customer deposits stabilized at 98.3%. Non-performing loans accounted for 1.9% of total loans.