Key Highlights
QNB stands poised for substantial growth, driven by a +30% YTD increase in assets, elevating its total balance sheet value to EGP 820 billion. The bank also reported a remarkable 63% YOY growth in net profit, totaling EGP 26 billion. This robust performance reflects the strength of its operational model, highlighted by an outstanding cost-to-income ratio of 16.8%.
Successfully upholding the quality of its loan portfolio amid wider economic difficulties, thanks to its rigorous asset management practices. The NPL ratio declined to reach 5.44%, accompanied by a coverage ratio of 107.0%, which guarantees a solidly built and safeguarded portfolio.
By the conclusion of the year 2024, QNB held a strong liquidity position and a resilient capital structure, evidenced by a capital adequacy ratio of 24.3%, well above the CBE minimum requirement of 12.5%.
1.1. Financial Position
• Gross loans increased by +37% YTD to reach EGP 364,783 million, with retail loans increasing by +23% YTD to reach EGP 66,391 million and corporate loans growing by +40% YTD to reach EGP 298,392 million.
• Customer deposits increased to EGP 679,887 million +28% YTD. Retail deposits rising by +35% YTD to EGP 234,286 million. On the other hand, corporate deposits increased to EGP 445,601 million, up by +25% YTD.
• Total Equity closed at EGP 91,026 million +37% YTD. The capital adequacy and tier 1 ratios stood at 24.3% and 23.8%, respectively, well above CBE’s minimum requirements of 12.5% and 8.5%.
1.2. Income Statement
• Net Banking Income maintained its strong performance to reach EGP 53,126 million, driven by the NII reading which showed EGP 41,112 million in FY24, +33% YOY. Fees and Commissions grew by +42% YOY to reach EGP 5,607 million in FY24. The YTD NIM decreased by -1 bps from December 2023 to reach 6.22%.
• Operating expenses increased by +30% YOY to reach EGP 8,910 million for FY24, reflecting improved efficiency that reached 16.8% by the end of Dec-24, down by -147 bps YOY.
• Provision expense, QNB made sure to cover the necessary need. Charges for expected credit losses (ECL) reached a net allocation of EGP 4,582 million YTD.
• Net profit recorded EGP 26,398 million for FY24, +63% YOY.
Corporate Social Responsibility:
QNB maintained its commitment to corporate social responsibility initiatives, while aligning with the presidential initiative “New Beginning for Human Building”. QNB provided 483 scholarships to students of Menoufia University in cooperation with Misr El-Kheir Foundation, organized a second campaign featuring “Medical Conveys for the elderly” at nursing homes, and developed a Joint Preparatory School for 845 students, in partnership with the Sonaa Al-Khair Foundation aiming to improve education quality.