- Qatar National Bank (QNB) reports a 7% surge in net profit during the first quarter.
- This increase is driven by a significant rise in net interest income, which experiences a robust 12% increase, reaching 8.08 billion Qatari riyals.
- Operating income also rises by 11% to 10.4 billion riyals, reflecting the bank’s strong financial position.
- QNB’s credit expansion of 7% in the first quarter has been praised, aligning closely with growth projections for Saudi and UAE lenders, indicating positive market positioning.
Qatar National Bank (QNB) announced on Monday that its net profit surged by 7% during the first quarter. This surge was mainly driven by a significant increase in net interest income, which is a positive sign for the Gulf’s largest bank by assets.
The bank reported a net profit of 4.1 billion Qatari riyals ($1.12 billion), marking a notable increase from the 3.9 billion riyals recorded a year earlier. Analysts had anticipated this figure, as per data from LSEG.
The growth in net interest income, which reflects the difference between earnings on loans and payouts on deposits, was particularly impressive, experiencing a robust 12% increase to reach 8.08 billion riyals.
Additionally, the operating income also saw a considerable rise of 11%, climbing to 10.4 billion riyals. Elena Sanchez-Cabezudo, a banking analyst at EFG Hermes, expressed satisfaction with the bank’s overall performance, describing the results as “pretty solid.”
Sanchez-Cabezudo attributes the positive net profit to various factors. These include the increase in net interest income, fee and forex incomes, and reduced provisioning costs.
QNB reported total assets amounting to 1.237 trillion riyals by the end of March. This reflects a 5% increase compared to the previous year. This growth is primarily driven by a 7% surge in loans and advances from the preceding year.
The bank’s credit expansion of 7% in the first quarter received acclaim. This is particularly noted for its proximity to the anticipated 8% growth projected for Saudi and UAE lenders, as noted by Sanchez-Cabezudo.
EFG Hermes anticipates that QNB will reaffirm its earnings growth projection of 7-9% for 2024 during the upcoming earnings call.
QNB’s performance in the first quarter exhibited strong growth, driven by a notable increase in net interest income and robust credit expansion.
The bank’s steadfast commitment to its earnings guidance underscores its determination to uphold growth momentum amidst the ever-changing economic landscape.
