Qatar National Bank (Q.P.S.C.) (QNBK) Q1 2025 earnings summary

Executive summary

• Net profit for Q1 2025 reached QAR 4.344 billion (USD 1.17 billion), up 3.3% year-over-year; excluding global minimum taxes, net profit rose 11%.

• Operating income increased 6% to QAR 10.85 billion (USD 3 billion), reflecting robust revenue growth across segments.

• Upgraded full-year profitability guidance: pre-tax profit expected to rise 10-12%, post-tax profit now guided up 2-4% due to strong Turkish franchise performance.

• QNB is the largest bank in the Middle East and Africa by all balance sheet metrics, with a presence in over 28 countries and a workforce of about 31,000 employees.

• QNB's brand value rose 11% to USD 9.4 billion, ranking 39th globally and first in MEA for the 12th consecutive year.

Financial highlights

• Total assets grew 7% year-over-year to QAR 1.324 trillion (USD 364 billion).

• Loans and advances rose 9.2% to QAR 947.3 billion (USD 260.2 billion); customer deposits increased 6% to QAR 930.5 billion (USD 255.6 billion).

• Cost-to-income ratio remained strong at 22.7%, among the best in EMEA.

• Non-performing loan ratio stable at 2.8% with 100% coverage; total provisions at QAR 35.6 billion.

• Capital adequacy ratio at 19.3%, well above regulatory requirements.

Outlook and guidance

• Balance sheet growth guidance maintained at 5-7%.

• Cost of risk guidance for 2025 remains at 80-90 basis points; Q1 at midpoint.

• Net interest margin (NIM) guidance unchanged at 260-265 basis points; two 25bps rate cuts expected in H2 2025.

• Effective tax rate for the full year expected near Q1's 18.5%, subject to inflation trends.

• Dividend payout ratio guidance unchanged at 35-40%; if global minimum taxes materially impact profit, taxes will be added back for payout calculation.