Qatar National Bank (Q.P.S.C.) (QNBK) Q2 2024 earnings summary

Executive summary

• Net profit for H1 2024 reached QR8.28 billion ($2.24 billion), up 7% year-over-year, with operating income rising to QR19.85 billion ($5.5 billion).

• Total assets grew 5% to QR1.26 trillion ($346.3 billion), and customer deposits increased 6% to QR890.56 billion ($245 billion).

• Interim cash dividend of QR0.33 per share (totaling QR3.05 billion) announced, subject to regulatory approval.

• Maintains top-tier credit ratings and is recognized as the most valuable banking brand in the region, valued at $8.4 billion in 2024.

• Strong operating performance and significant support from the Qatari government.

Financial highlights

• Loans and advances rose 7% year-over-year to QR879.36 billion ($241.5 billion).

• Cost-to-income ratio at 22.4%, among the best in the EMEA region; net interest margin at 2.61%.

• Non-performing loan ratio at 3%, with Stage 3 loan coverage at 100%.

• Capital adequacy ratio at 19.2%, well above regulatory requirements.

• International operations contributed 27% of net profit, 20% of loans, and 43% of deposits.

Outlook and guidance

• Full-year balance sheet growth guidance raised to 5%-7%, with P&L growth expected at 7%-9%.

• Qatar-only loan growth expected to reach 4.5%-5% by year-end.

• Cost-to-income ratio expected to remain around 22.5% for the year.

• NIMs expected to stabilize between 240-245 basis points, with margin pressure offset by balance sheet growth.

• The Group is monitoring climate-related risks, though current impact on measurement is not significant.