QNB Group, the Middle East's leading lender, recorded a strong net profit of QR4.7bn for the first half of 2013 (H1 2013) ended June 30. The recorded profit is up by 15.1 percent compared to the same period last year. The Group's H1 2013 results include the financial results of NSGB in Egypt, in which it concluded the acquisition of a controlling stake amounting to 97.12 percent in March 2013. The Group's prudent cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 20.5 percent, which is considered one of the best ratios among financial institutions in the region. Total assets increased by 30.4 percent from June 2012 to reach QR431bn, the highest ever achieved by the bank. This was the result of a strong growth rate of 26.3 percent in loans and advances to reach QR296bn. The Group was able to maintain the ratio of non-performing loans to gross loans at 1.5 percent, a level considered one of the lowest among banks in the Middle East and Africa, reflecting the high quality of the Group's loan book and the effective management of credit risk. The Group's conservative policy on provisioning continued with the coverage ratio reaching 118 percent in June. At the same time QNB Group increased customer funding by 32.7 percent to QR326bn. This led to the Group's loan to deposit ratio improving to 91 percent. In April QNB Group announced the successful completion of a bond issuance under its Euro Medium Term Note (EMTN) programme in the international capital markets. Under this programme a $1bn tranche was issued on April 22 with a 7 year maturity and an attractive coupon rate of 2.875 percent. Earnings per Share reached QR6.8, compared to QR5.9 in June 2012. The bank's capital adequacy ratio stood at 15 percent as at June 30, higher than the regulatory requirements of Qatar Central Bank and the Basel Committee. As a result of the Group's high credit ratings and outstanding asset quality, it was selected as one of the world's 50 safest financial institutions by Global Finance. QNB Group tops the list in the Bloomberg Markets magazine's annual ranking of the World's Strongest Banks. It was in 2012 that QNB was included in the list of eligible banks for the first time (78 banks were eligible globally) as a result of achieving more than $100bn of assets. NSGB, one of the Group's subsidiaries, announced outstanding results for the period ended 30 June 2013, net profit reached EGP845M ($123.9m) up by 21.2 percent compared to the same period last year. Total assets increased by 17.3 percent from June 2012 to reach EGP74.9bn ($10.7bn). These results are consolidated under International Financial Reporting Standards. Based on the Group's continuous strong performance and the expanding international presence, the bank is currently ranked as the most valuable brand in the MENA region and with a world ranking of 120. QNB gets green light to open China office QNB Group has received all regulatory approvals to open a representative office in China. The Group also received approvals to establish a fully owned subsidiary in India under the name of "QNB (India) Private Limited" which is expected to commence its operations during the third quarter of this year. Peninsula
