QNB Group, the world's strongest bank and the leading bank in the Middle East and North Africa, posted a 15.1 percent increase in net profit during the first half of 2013 at QR4.7 billion ($1.3 billion), the banks said in a statement Wednesday. These results include the financial results of NSGB in Egypt, in which the Group concluded the acquisition of a controlling stake amounting to 97.12 percent in March 2013. The Group's prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 20.5 percent, which is considered one of the best ratios among financial institutions in the region. Total assets increased by 30.4 percent from June 2012 to reach QR431 billion ($118.5 billion), the highest ever achieved by the Bank. This was the result of a strong growth rate of 26.3 percent in loans and advances to reach QR296 billion ($81.4 billion). The Group was able to maintain the ratio of non-performing loans to gross loans at 1.5 percent, a level considered one of the lowest amongst banks in the Middle East and Africa, reflecting the high quality of the Group's loan book and the effective management of credit risk. The Group's conservative policy in regard to provisioning continued with the coverage ratio reaching 118 percent in June 2013. At the same time QNB Group increased customer funding by 32.7 percent to QR326 billion ($89.6 billion). This led to the Group's loan to deposit ratio improving to 91 percent. In order to diversify its source of funds, in April QNB Group announced the successful completion of a bond issuance under its Euro Medium Term Note (EMTN) program in the international capital markets. Under this program a $1.0 billion tranche was issued on 22 April 2013 with a 7 year maturity and an attractive coupon rate of 2.875 percent. The Reg S issue generated strong interest from investors around the world. Total Equity increased by 10.3 percent from June 2012 to reach QR49 billion ($13.3 billion) as at 30 June 2013. Earnings per Share reached QR6.8 ($1.9), compared to QR5.9 in June 2012. The capital adequacy ratio stood at 15.0 percent as at 30 June 2013, higher than the regulatory requirements of Qatar Central Bank and the Basel Committee. The Group's high credit ratings and outstanding asset quality made it as one of the world's 50 safest financial institutions by Global Finance. — SG
