Qatar National Bank annual profit up 9% in 2022
11/01/2023 11:47
DUBAI, Jan 11 (Reuters) - Qatar National Bank (QNB)
QNBK.QA , 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%.
($1 = 3.6577 Qatar riyals)
(Reporting by Yousef Saba
Editing by Mark Potter)
((Yousef.Saba@thomsonreuters.com; +971562166204; https://twitter.com/YousefSaba))