The Banking Executive Magazine - January 2023 Issue

Technology Outlook 2023 QNB NET PROFIT SURGES 22% TO HIT $4.4BLN IN 2022 Qatar-based QNB, a leading finan- cial institution, said that net profit be- fore the impact of hyperinflation for 2022 reached QR16.1 billion ($4.4 billion), an increase of 22% com- pared to the previous year. QNB Group successfully managed the negative impact arising from hy- perinflation in Turkey, thereby net profit after the impact of hyperinfla- tion reached QR14.3 billion ($3.9 billion), an increase of 9% compared to same period last year. The Board of Directors of QNB Group have recommended the distri- bution of a cash dividend of 60% of the nominal share value (QR0.60 per share). The annual financial results for 2022 along with the proposed profit distribution are subject to Qatar Central Bank (QCB) approval. Operating Income increased by 24% to reach QR35.1 billion ($9.6 billion) which reflects the Group's continued successful efforts in maintaining growth across a range of revenue sources. Total assets reached QR1,189 billion ($327 billion), an increase of 9% from December 31, 2021, mainly driven by growth in loans and ad- vances by 6% to reach QR808 bil- lion ($222 billion). Strong customer deposits helped to increase customer deposits by 7% to reach QR842 billion ($231 billion) from 31 December 2021. The above helped to improve the loans to de- posits ratio to 95.9% as at 31 De- cember 2022 reflecting the improvement in QNB Group's liq- uidity. QNB Group continues to drive oper- ational efficiency to reap cost-sav- ings and enhanced revenue sources helped QNB Group to improve the efficiency (cost to income) ratio to 19.7%% from 22.2%, which is con- sidered one of the best ratios among large financial institutions in the MEA region. The ratio of non-performing loans to gross loans reached 2.9% as at 31 December 2022, one of the lowest amongst financial institutions in the MEA region, reflecting the high qual- ity of the Group's loan book and the effective management of credit risk. Also during the year, QNB Group set aside QR8.8 billion ($2.4 billion) as a precaution for potential loan losses. This helped the Group to maintain its coverage ratio at 99%, which reflects the prudent approach adopted by the Group towards non-performing loans. Total equity increased to QR106 bil- lion ($29 billion), up by 6% from De- cember 2021. Earnings per share reached QR1.44 ($0.40). Group Capital Adequacy Ratio (CAR) as at December 31, 2022 amounted to 19.6% higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee. the BANKING EXECUTIVE 30 ISSUE 169 JANUARY 2023