#Financial Performance #Qatar #Doha #QNB Group

QNB Group's Stellar Financial Results for 2024

In a recent announcement, QNB Group, one of the most prominent financial institutions operating in the Middle East and Africa (MEA), revealed its financial performance for the fiscal year ending December 31, 2024. During a board meeting that took place on January 13, 2025, significant milestones were discussed, including record profits and proposed shareholder dividends.

Key Financial Highlights

The board of directors has approved a cash dividend proposal of 37% of the nominal share value (0.37 QAR per share) for the second half of the fiscal year 2024, bringing the total payout to 70% of the nominal share value (0.70 QAR per share) for the entire year. These impressive financial results and dividends are poised for final approval by both the Central Bank of Qatar (QCB) and the General Assembly.

QNB Group's net profit for the year surged by 8% compared to the previous year, reaching 16.7 billion QAR (approximately 4.6 billion USD). Operational income also recorded an encouraging increase of 6%, totaling 41.3 billion QAR (about 11.4 billion USD). This growth reflects the company's robust performance across a variety of revenue streams, boosting the institution's resilience and financial stability.

The total assets as of December 31, 2024, stood at 1.298 trillion QAR (around 357 billion USD), showcasing a 5% increase from the previous year. This rise is largely attributed to a 7% growth in loans and advances, which reached 911 billion QAR (approximately 250 billion USD). Additionally, customer deposits observed a 3% increase, amounting to 887 billion QAR (about 244 billion USD). This highlights QNB Group's effective strategy in diversifying its deposit generation sources.

Operational Efficiency

The cost-to-income ratio for QNB Group was notably low at 22.3%, marking it as one of the best among major financial institutions in the MEA region. As of December 31, 2024, the group reported an impressive bad loans ratio of just 2.8%, coupled with a loan loss coverage ratio of 100%. These figures underscore the high quality of the bank's loan book and its effective management of credit risks. Furthermore, the bank's provisioning for bad debts decreased by 6% year-on-year, settling at 8.1 billion QAR (roughly 2.2 billion USD).

Shareholders will also be pleased to know that QNB Group’s equity has risen to 114 billion QAR (about 31 billion USD), marking a 3% increase from the prior year. The earnings per share (EPS) reached 1.69 QAR (approximately 0.46 USD), reinforcing the bank’s commitment to providing returns to its investors.

In terms of liquidity and capital adequacy, QNB Group maintained a solid Capital Adequacy Ratio (CAR) of 19.2% as of the end of 2024. Moreover, the bank's Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) stood at 179% and 101%, respectively, both exceeding the regulatory requirements set by QCB and the Basel III reforms.

A Global Presence

QNB Group operates in 28 countries across three continents and boasts a strong network of approximately 900 branches and more than 5,000 ATMs, supported by a workforce of over 31,000 employees. This expansive reach not only enhances the group's ability to serve its diverse clientele but also solidifies its position as a key player in the banking sector.

In conclusion, the QNB Group's exceptional financial results for the fiscal year ending December 31, 2024, reflect not only its resilient growth but also its strong market position. With promising dividends on the horizon, shareholders can look forward to continued financial success in the upcoming years.