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Middle East's QNB Reports Net Profit Dip In 2020

Editorial Staff

12 April 2021

, the largest financial institution in the Middle East and Africa (MEA), has announced its results for the three months ending 31 March 2021.

Qatar National Bank (QNB), which provides services including private banking, reported a net profit of QAR3.3 billion ($900 million) in 2020, falling by 7 per cent from the same period a year ago. 

The Middle East-based lender chalked up operating income of QAR6.7 billion, in line with the result for 2020.

The firm set aside a loan loss provision of QAR1.4 billion as a precautionary measure, taking into account the long-term view of the financial affects of COVID-19 pandemic. As at the end of March this year, the ratio of non-performing loans stood at 2.2 per cent, which QNB said is one of the lowest rates of any bank in the Middle East region. 

The bank had an income/cost margin of 23.4 per cent.

QNB said it had a Capital Adequacy Ratio – a standard measure of a bank’s capital buffer – of 19 per cent, higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee.