QNB Al Ahli scores 52.42 points on First Bank financial soundness index

Egypt's largest private bank, Qatar National Bank (QNB), leading private sector lender, has been seen scoring 52.42 points by the end of September 2022 on First Bank’s financial soundness index, compared to the sector average of 50 points

The financial soundness index set by First Bank, measures the strength and soundness of the banks' financial positions and their ability to preserve the funds of depositors and shareholders

The financial soundness index is based on six measures: the capital adequacy ratio, the financial leverage ratio, assets to deposits ratio, shareholders equity to deposits ratio, loans to deposits ratio and non-performing loan ratio.

QNB Al Ahli’s capital adequacy ratio reached 22.79% at the end of September 2022, while the average rate of banks operating Egypt was at 20.50% during the same period, exceeding the regulatory limits set by the Central Bank of Egypt which are consistent with Basel Accord of 12.5%

The bank has been ranked third on First Bank list of largest listed bank in terms of capital adequacy ratio at the end of Q3-22. The analysis included 11 banks operating in the Egyptian banking sector for which financial statements were made available

Moreover, the bank’s financial leverage ratio recorded 10.32% at the end of September 2022 above the average rate of banks operating Egypt of 6.7 %. The financial leverage ratio reflected the relation between tier I used in capital adequacy ratio and the bank’s non-risk-weighted assets exceeding the regulatory limits set by the Central Bank of Egypt

However, the bank’s ratio of non-performing loans to total loans portfolio recorded 4.09% by the end Q3-22 higher than an average of 3.2 % of the total banking sector

In addition, the bank’s loans to deposits ratio was higher the banking sector average recording47.40% at the end of September 2022, compared to an average of 57.21% of the total banking sector during the same period

The bank has been ranked fifth on First Bank list of largest listed bank in terms of loans to deposits ratio at the end of September. The analysis included listed banks operating in the Egyptian banking sector for which financial statements were made available

In addition, the bank’s assets to deposits ratio declined below the banking sector average recording 116% at the end of September 2022, compared to an average of 138.14% of the total banking sector during the same period

However, the bank’s shareholders equity to assets ratio recorded 12.95% at the end of Q3 2022 exceeding the average of the total banking sector which was set at 9.02% during the same period.