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QNB Q3'19 profit rises YOY to 3.84B riyals

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QNB Q3'19 profit rises YOY to 3.84B riyals

Qatar National Bank (QPSC) reported third-quarter profit attributable to equity holders of the bank of 3.84 billion Qatari riyals, up from 3.72 billion riyals a year earlier.

Net interest income rose for the quarter rose to 5.10 billion riyals from 4.72 billion riyals a year earlier, while net fees and commission income increased year over year to 961.7 million riyals from 839.2 million riyals.

Operating income amounted to 6.43 billion riyals in the third quarter, compared to 5.98 billion riyals in the same period a year earlier.

Net impairment losses on loans and advances to customers decreased on a yearly basis to 618.4 million riyals from 684.0 million riyals. The bank booked net impairment losses on other financial instruments of 34.9 million riyals in the quarter, compared to net impairment recoveries on other financial instruments of 107.7 million riyals a year earlier.

QNB said its loan book remained healthy, with its nonperforming loan ratio standing at 1.9% in the quarter versus 1.8% in the third quarter of 2018.

The lender booked stage 3 impairment on nonperforming loans and advances to customers of 13.05 billion riyals, compared to 12.69 billion riyals at the end of 2018 and 11.50 billion riyals a year earlier.

Under IFRS 9, stage 3 loans are considered nonperforming as opposed to stage 2 and stage 1, which are underperforming and performing loans, respectively.

The bank's total capital adequacy ratio stood at 18.2% at the end of September, compared to 19.0% at 2018-end and 15.6% a year earlier.

QNB obtained regulatory approval to open a branch in Hong Kong in September and said this was a "fundamental step" in its international expansion.

As of Oct. 8, US$1 was equivalent to 3.64 Qatari riyals.