Qatar National Bank annual profit up 9% in 2022
- By Reuters -
- Jan 11, 2023
Qatar National Bank (QNB), the Gulf’s biggest bank by assets, reported on Wednesday a 9% rise in annual net profit after adjusting for hyperinflation related to its business in Turkey.
Net profit for 2022 was 14.3 billion riyals ($3.91 billion) from 13.2 billion riyals in 2021. Full-year net profit before the impact of hyperinflation was 16.1 billion riyals, QNB said.
“Since the 2nd quarter of 2022, QNB’s Turkey operations has been subject to hyperinflationary accounting requirements as per International Financial Reporting Standards,” the lender said.
The non-cash adjustment, named “net monetary loss arising from hyperinflation”, was 1.7 billion riyals in 2022.
The bank’s profit for the quarter ended Dec. 31 was roughly 3.3 billion riyals, according to Reuters calculations. Net profit in the same quarter a year earlier was 2.95 billion riyals.
The results beat analyst estimates, which expected the bank to report net profit of about 13.7 billion riyals in 2022, according to data from Refinitiv. EFG Hermes estimated fourth quarter net profit of 2.96 billion riyals.
QNB’s board recommended a cash dividend of 0.6 riyal per share.
Total assets were up 9% from a year earlier to 1.189 trillion riyals. Loans and advances rose 6% to 808 billion riyals in the full year, while customer deposits were 7% higher at 842 billion riyals.
QNB’s loans to deposit ratio slipped to 95.9% from 97.2%. Its non-performing loans ratio edged up to 2.9% from 2.3%, while the coverage ratio fell to 99% from 117%.