Doha, Qatar /PRNewswire/ -- QNB, the largest financial institution in the Middle East and Africa (MEA) region, announced its results for the six months ended 30 June 2022.

Net Profit (before the impact of hyperinflation) for the six months ended 30 June 2022 reached QAR7.8 billion (USD2.1 billion), an increase of 15% compared to the same period last year.

Net Profit (after the impact of hyperinflation) for the six months ended 30 June 2022 reached QAR7.0 billion (USD1.9 billion), an increase of 4% compared to same period last year.

Total Assets as at 30 June 2022 reached QAR1,124 billion (USD309 billion), an increase of 6% from 30 June 2021, mainly driven by good growth in Loans and advances by 3% to reach QAR766 billion (USD210 billion). Diversified customer deposits generation helped to increase customer deposits by 4% to reach QAR795 billion (USD218 billion) from 30 June 2021.

During the period, QNB Group's Turkey operations was subjected to hyperinflationary accounting requirements as per International Financial Reporting Standards due to which a non-cash "net monetary loss" was reported in the Group's income statement amounting to QAR744 million (USD204 million). This accounting adjustment was neutral on the Group's total equity.

Operating Income increased by 20% to reach QAR16.3 billion (USD4.5 billion) which reflects the Group's success in maintaining growth across a range of revenue sources.

The Group's drive for operational efficiency continues to yield cost-savings and enhanced revenue sources that enabled QNB Group to improve efficiency (cost to income) ratio to 20.2% from 22.9%, which is considered one of the best ratios among large financial institutions in the MEA region.

QNB's strong asset and liability management capabilities resulted in the loans to deposits ratio reaching 96.4% as at 30 June 2022.

The ratio of non-performing loans to gross loans stood at 2.4% as at 30 June 2022, one of the lowest amongst financial institutions in the MEA region, reflecting the high quality of the Group's loan book and the effective management of credit risk. In addition, during the six month period ended 30 June 2022, QNB Group set aside QAR3.9 billion (USD1.1 billion) as a precaution for potential loan losses. This helped the Group to increase its coverage ratio to 123%, which reflects the prudent approach adopted by the Group towards non-performing loans.

Total Equity increased to QAR103 billion (USD28 billion), up by 5% from June 2021. Earnings per share reached QAR0.71 (USD0.20).

Capital Adequacy Ratio (CAR) as at 30 June 2022 amounted to 18.9% higher than the regulatory minimum requirements of the Qatar Central Bank and Basel Committee.

Group statistics

QNB Group supported by 27,000 staff operating from approximately 1,000 locations and 4,700 ATMs.

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