Qatar National Bank (Q.P.S.C.) (QNBK) Q4 2024 earnings summary

Executive summary

• Major investments in gas production, including the North Field Expansion Project, are set to boost Qatar's LNG output by 85% to 142 million tonnes per annum by 2030, supporting economic growth and diversification efforts.

• Qatar's economy is transitioning towards a knowledge-based model, with strong momentum in business, tourism, and culture, and continued execution of the Qatar National Vision 2030.

• 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.

• Maintains top-tier credit ratings (Aa2/AA/A+) and is recognized as the most valuable banking brand in the region, valued at USD 8.4 billion in 2024.

• QNB's international operations contribute significantly to growth, with 29% of net profit and 22% of loans from international markets as of 2024.

Financial highlights

• Net profit for 2024 reached QAR 16.7 billion (USD 4.7 billion), up 8% year-over-year; earnings per share at QAR 1.69 (USD 0.46).

• Total assets increased 5% to QAR 1.298 trillion (USD 357 billion); loans and advances grew 7% to QAR 911 billion (USD 250 billion); deposits rose 3% to QAR 887 billion (USD 243.7 billion).

• Operating income rose 6% to QAR 41.3 billion (USD 11.4 billion); net interest income grew 8% to QAR 32.8 billion.

• Non-performing loan ratio improved to 2.8%, with 100% coverage on Stage 3 loans.

• Dividend distribution proposed at 70% of nominal share value (QAR 0.7 per share), subject to approvals.

Outlook and guidance

• Group expects loan and deposit growth of 5-7% and profit growth of 7-9% (excluding new 15% minimum tax) for 2025.

• Net interest margin guidance for 2025 is 260-265 basis points, flat versus 2024, with growth in net interest income driven by higher volumes.

• Cost of risk expected to decline to 80-85 basis points in 2025.

• Egypt: loan growth 11-13%, deposit growth 15-17%, profit growth 12-16%. Turkey: loan growth 30-35%, deposit growth 35-40%, profit growth 200-220%.

• Pillar Two 15% minimum tax to be implemented in 2025, with group-level effective tax rate projected at 20-25%.