#Qatar #Doha #financial results #Dividend Announcement #QNB Group

QNB Group: Outstanding Financial Results for 2024

On January 13, 2025, QNB Group, recognized as one of the largest financial institutions in the Middle East and Africa (MEA), reported its exceptional financial results for the year ending December 31, 2024. The announcement was made during a board meeting, which underscored the organization’s commitment to transparency and shareholder value.

Key Financial Highlights

QNB Group's Board of Directors has proposed a cash dividend of 37% of the nominal share value, which equates to QAR0.37 per share, for the second half of 2024. This proposal reflects the bank’s solid net profit, which soared by 8% to QAR16.7 billion (approximately USD4.6 billion) from the previous year. The total dividend for the entire year culminates at 70%, indicating the board’s strong confidence in the bank's ongoing performance. This total dividend distribution is subject to the approval of the Qatar Central Bank (QCB) and the upcoming General Assembly.

Operating income also showed a healthy increase of 6%, reaching QAR41.3 billion (USD11.4 billion), showcasing QNB's success in diversifying its revenue streams. The total assets at the close of 2024 reached QAR1,298 billion (USD357 billion), marking a 5% growth year-over-year.

Growth in Loans and Deposits

A significant highlight of these results is the 7% growth in loans and advances, which are reported to be QAR911 billion (USD250 billion). Furthermore, customer deposits increased by 3% to QAR887 billion (USD244 billion). This growth is attributed to robust strategies in deposit generation diversification, solidifying QNB's reputation for reliability and trust.

Operational Excellence and Risk Management

The efficiency ratio, a critical measure of operational performance, stood at a remarkable 22.3%. This places QNB Group among the top performers in the MEA region in terms of cost management. Moreover, it reported one of the lowest non-performing loan ratios at 2.8%, coupled with a 100% loan loss coverage ratio, affirming the high quality of its loan portfolio and effective credit risk management. The bank's loan loss charges decreased by 6% to QAR8.1 billion (USD2.2 billion), illustrating its solid risk management practices.

Total equity increased by 3%, amounting to QAR114 billion (USD31 billion), with earnings per share reaching QAR1.69 (USD0.46). Additionally, QNB Group maintains a robust Capital Adequacy Ratio (CAR) of 19.2%, reflecting a strong capital base well above regulatory minimums.

A Global Institution

QNB Group's extensive operations span 28 countries across three continents, operating approximately 900 locations and supported by over 31,000 staff. The bank has over 5,000 ATMs, showcasing its commitment to accessibility and customer convenience.

In summary, QNB Group's financial performance for 2024 not only demonstrates its remarkable growth and resilience but also reinforces its standing as a leader in the financial sector. The proposed dividend reflects the group's positive outlook and commitment to generating value for its shareholders as it moves forward into the new year.