The Banking Executive Magazine - April 2022 Issue

Gulf Lender QNB Gulf Lender QNB POSTS 9% RISE IN FIRST-QUARTER PROFIT Qatar National Bank (QNB) posted a 9% rise in quarterly profit on Mon- day, helped by healthy loan growth and cost savings. Gulf banks are recovering as pan- demic-linked restrictions are eased and economic activity picks up, en- joying a boost from higher energy prices as oil is the region's biggest export. The Gulf's biggest bank reported a net profit of 3.62 billion Qatar riyals ($989.6 million) for the three months to March 31, up from 3.31 billion riyals a year earlier. EFG Hermes had predicted a net profit of 3.68 billion riyals in the first quarter. QNB said in a statement that loans and advances grew 6% in the first quarter from a year earlier, as eco- nomic activity picked up. S&P Global rating expects Qatar's economy to expand 4% in 2022, supported by high vaccination rates, the soccer World Cup, and higher hydrocarbon prices. Qatari banks have minimal direct ex- posure to Russian or Ukrainian coun- terparties, the rating agency said in a report last week. The bank said its cost-to-income ratio fell to 20.8% in the first quarter from 23.4% a year earlier, citing cost-savings and enhanced revenue sources. Customer deposits grew by 5%. QNB has received regulatory ap- proval to increase its foreign owner- ship limit to 100% from April 6, it said. ISSUE 160 APRIL 2022 the BANKING EXECUTIVE 49