Loan growth drives Qatar National Bank profit jump

Qatar National Bank (QNB) (QNBK.QA), the Gulf's biggest lender, posted an 8 per cent increase in nine-month net profit to 10.3 billion Qatari riyals ($2.83 billion), citing loan growth.

Loans and advances grew 7 per cent in the period while total assets rose 10 per cent to 1,084 billion riyals, it said in a statement.

The bank also said its drive for "operational efficiency" resulted in cost savings and combined with the improved revenue, helped improve the cost to income ratio to 22.5 per cent from 24.2 per cent.

Operating income in the first nine months of 2021 grew by 8 per cent to 20.7 billion riyals, it said.

QNB said its non-performing loans ratio amounted to 2.3 per cent as of Sept. 30, adding that was one of the lowest ratios among financial institutions in the Middle East and Africa.

The bank set aside 4.5 billion riyals for loan loss provisions, increasing its coverage ratio to 112 per cent.

QNB, which serves more than 20 million customers, is 50 per cent owned by Qatar’s sovereign wealth fund, the Qatar Investment Authority.