QNB ALAHLI has shown similar resilience against the challenges posed by effects of the pandemic whether on sub

Banking,QNB,QNB ALAHLI,QNB ALAHLI Financial Results,Banking Sector

Wednesday, 26 January 2022
Chairman and Chief Editor
Bedour Ibrahim

QNB ALAHLI Financial Results for FY2021

Egypt economic recovery shows resilience despite the successive infection waves and evolving COVID-19 variants that continue to elevate the uncertainty level across the globe.

The preemptive measures by both the fiscal and monetary policies with accelerating pace of the vaccination campaign should soften the impact of prolonged recovery.

QNB ALAHLI has shown similar resilience against the challenges posed by effects of the pandemic whether on subdued private sector demand, inflationary pressures, or elevated risk with increasing uncertainty.

QNB ALAHLI delivered a robust balance sheet and strong core earnings growth backed by the agility of its business model. Assets’ growth accelerated to 24% YTD while net profit grew 2% recording 7,627 MEGP bringing ROAA and ROE to 2.3% and 17.7% respectively.


Total Assets reached EGP 359,569 million, up +24% YTD.

Gross Loans reached EGP 182,913 million, up +6% YTD

Customer Deposits reached EGP 295,492 million, up +27% YTD.

Non-performing Loans ratio and Coverage ratio of 3.81% and 143% respectively.

Capital Adequacy ratio of 22.8% well above minimum required by CBE.

Gross profit reached EGP 13,328 million, +4% YOY.

Net Profit recorded EGP 7,627 million, +2% YOY.

Cost-to-Income ratio of 25.3%.

ROAA and ROAE of 2.3% and 17.7%, respectively.

The remarkable balance sheet growth was led by 27% YTD growth in deposits to record EGP 295,492 million by end of 2021. Gross loans portfolio stood at EGP 182,913 million being +6% YTD.

Gross Loans to Deposits scored c. 62% with a conscious focus on profitability.

Assets quality remains good relative to the market benchmarking levels with NPL ratio of 3.81% backed by a coverage ratio of 143%.

QNB ALAHLI managed once more to exceed the 25% target for SMEs, designated by CBE, scoring 25.47% end of Dec-21 one full year ahead of the mandated time frame.

This marks off the 2nd and last target after already achieving the one for small enterprises back in 1H21. Such achievements assert the commercial orientation of the bank and dynamism of its business model.

QNB ALAHLI has positioned itself well to overcome impact of the economic slowdown while it looks forward for the post-pandemic accelerated growth.

The well spread branches’ network with continued investment and innovation in digital channels, the diversity of its products’ offering as well as its subsidiaries and the large customers’ base are key enablers for reaping the benefits of its dynamic model while providing further support to Egypt economic success story.

Financial Results

Gross Loans reached EGP 182,913 million, with an increase of +6% compared to Dec-20. Retail loans achieved a pleasant yearly growth to reach EGP 36,304 million with a difference of 12% YTD.

While corporate loans secured an increase by 4% despite to tough market competition, reaching EGP 146,610 million.

Loans market share reached 6.10% as of Sep-21 down from 6.98% in Dec-20, on a standalone basis, as per latest available data revealed by CBE.

Customer Deposits made a decent stretch reaching EGP 295,492 million +27% compared to Dec-20.

Growth was split to +39% YTD on the corporate side reaching EGP 170,366 million and +13% YTD on the retail side, with an amount of EGP 125,126 million representing 42% of the deposit stock.

Deposits market share has maintained its position of 4.54% total market share as of Sep-21, on a standalone basis, as per latest available data revealed by the CBE.

Total Equity amounted to EGP 46,375 million, giving the bank more room for growth. The Capital Adequacy Ratio and Tier 1 ratios stood at 22.8% and 22.3%, respectively, well above the minimum required by CBE of 12.50% and 8.50%, respectively.

Liquidity Position remained solid even with the one of the highest utilization levels within the market with a gross loan/deposit ratio of c. 62% as at Dec-21.

The CBE Liquidity ratio in local currency reached 47% versus 20% as required by the CBE, while the CBE liquidity ratio in foreign currency reached 39% versus 25% as required by the CBE.

Moreover, the Net Stable Funding Ratio (NSFR) in local currency and foreign currency reached 200% and 144%, respectively, while Liquidity Coverage Ratio (LCR) in local and foreign currency reached 669% and 226%, respectively as of November 2021. 

Net Banking Income reached EGP 17,853 million FY21 with growth of 6% YOY. Net interest income attained EGP 15,340 million for FY21 representing a 5% growth YOY. Net fees and commissions were up by +13% YOY, recording EGP 2,030 million for FY21 impacted by the extension of the CBE decisions to waive some banking fees. While other operating income reached EGP 483 million and YTD NIM reached 5.25%

Operating expenses recorded EGP 4,525 million for FY21, along with a cost to income ratio of 25.3%.

Provision expense, QNB ALAHLI made sure to cover the necessary needs given the prevailing uncertainty. Charges for expected credit losses (ECL) reached a net allocation of EGP 2,193 million YTD.

Net profit grew by +2% over FY20, recording EGP 7,627 million.

QNB ALAHLI Corporate Social Responsibility:

QNB ALAHLI is pressing ahead as far as corporate social responsibility is concerned given its financial sector leadership position.

The diversity of projects, to maintain its support and effect across various domains, were aligned to boost CBE, the banking sector and government joint efforts to soften the pandemic impact, accelerate the local availability of the vaccines as well as increase the welfare of the population within under-served rural areas.