Qatar National Bank (QNB) retained its position as the largest bank in the Middle East with total assets reaching approximately QAR 1.39 trillion ($382 billion). QNB operates a scale-driven, diversified international banking model anchored by corporate and government lending, which together account for most of its deposit base. Abdulla Mubarak Al-Khalifa, group chief executive officer of QNB stated, “This year marked the end of our 2025 group-wide strategy cycle. While the execution of our strategy is an ongoing journey and progressing, we have this year embarked on a renewed multi-year strategy cycle until 2030.” QNB delivered a profit before tax of QAR 18.4 billion ($5.1 billion) in 2025, up 10% YoY. Total operating income increased by 8% to QAR 44.8 billion ($12.3 billion). The cost-to-income ratio (CIR) stood at 23.3%, reflecting the group's continued operational efficiency. The net interest margin (NIM) improved to 2.67% in 2025 from 2.65% last year, reflecting stable profitability. QNB signalled modest normalisation ahead. Senior vice president for group financial consolidation, Durraiz Khan explained the margin outlook. “Liabilities repriced, and assets will reprice further based on repricing or maturity dates — that is what will drive the margin slightly lower than this year. We ended the year at 267 basis points. For next year, we expect slight contraction, ending between 260 and 265 basis points,” he said. Non-interest income and geographic diversification broaden revenue base While net interest income accounted for approximately 80% of total income, the remaining 20%, QAR 9 billion ($2.5 billion), was generated from non-interest sources, including transaction banking, trade finance, wealth management, and advisory activities. Al-Khalifa explained, “The performance was supported by strong demand for credit across our network and an increase in net fee and commission income.” QNB’s broad geographic footprint added to its revenue spread, with international business accounting for 53% of total revenues. This positioning enables the group to capture corporate and trade flows across the GCC, Türkiye, Egypt, and Asia. In Egypt, QNB deepened its corporate and investment banking relationships across sectors such as infrastructure, energy, transport, real estate, and manufacturing. In 2025, it delivered net profit of EGP 27 billion ($548.3 million), with a strong return on average equity (RoAE) at 26.6%. Looking ahead, Durraiz expects continued expansion in Egypt, with 2026 guidance for loan growth of around 25–27%, deposit growth of 6–8%, asset growth of 8–12%, and profitability growth of 12–13%. In Türkiye, profitability remains constrained, with return on average equity (ROAE) at around 9.4%, reflecting margin pressures in a high-inflation environment. QNB’s Turkish subsidiary provides exposure to a large retail and SME banking market. The bank explained that hyperinflation continues to weigh on profitability and expects profitability to improve once inflation stabilises with return on equity potentially recovering toward the high 10% to 20%. Alongside these established markets, QNB is also expanding its footprint in Asia. As Al-Khalifa noted, “This year, we were the first bank from the MEA region to open a branch in GIFT City in Gujarat, India’s first international financial centre and a special economic zone.” He added that the location will support both onshore and offshore customers, strengthening the bank’s ability to facilitate cross-border banking and capital flows between the Gulf and India. Wealth management represents a small but growing segment of the business; it remains strategically important as part of QNB’s longer-term ambition to expand capital-light income streams. Assets under management (AUM) increased by 12% to QAR 29 billion ($8.0 billion). Revenue grew by 7.7%, supported by higher volumes and demand for newly launched products. The 2025 financial year marked the end of QNB's multi-year strategy cycle and the launch of a renewed roadmap to 2030, building on a prior cycle focused on capital buffers, operational efficiency, and regional leadership. Al-Khalifa outlined five growth engines for the new cycle: capitalise on GCC and MEA connectivity for our global clients; maintain our leading domestic corporate market position; support our clients in their hedging needs; nurture our financial institution relationships; and strengthen our wealth offering on-shore and off-shore. Growth in assets and deposits with a corporate-weighted funding structure Total assets expanded by 7% YoY to QAR 1.39 trillion ($382 billion). Loans and advances represent 73% of total assets. Deposits increased by 8% to QAR 955 billion ($262 billion). The deposit base remains anchored, with corporates accounting for 57.5% and government and public-sector entities contributing 25.2%. Retail deposits represent roughly 17.3% share, and current and savings accounts represent around 22% of the total deposit contribution, highlighting the bank’s corporate-heavy funding structure. Liquidity remained above regulatory requirements, with the liquidity coverage ratio (LCR) at 144% and the net stable funding ratio (NSFR) at 105%, driven by corporate funding. In addition, capitalisation is maintained, with a capital adequacy ratio (CAR) of 19.3%, above the 10.5% regulatory minimum. Return on equity (ROE) stood at 16.7%. The board approved a cash dividend of QAR 0.375 per share for the second half of 2025, bringing the total dividend for the year to QAR 0.725 per share ($0.20). QNB’s non-performing loan ratio (NPL) was recorded at 2.6%, which Durraiz Khan noted as "simply a factor of flow," adding that the bank targets coverage as close to 100% as possible. When pre-provisioning income is strong and full-year targets are being met, he said the bank takes a conservative stance "to make sure that we are building reserves for future risks." Cost of risk is expected to remain in the 80–85 basis points range. Energy-driven structural direction supported by capital and liquidity strength Loan growth reached 12% to QAR 1.02 trillion ($279.6 billion), reflecting active corporate and infrastructure financing, with 35% concentration to government and public sector entities, aligned with large-scale infrastructure and energy-related financing activity, particularly in Qatar and across the GCC. Al-Khalifa highlighted QNB's active participation in national strategic projects, pointing to the Qatar Airways financing as a demonstration of the bank's capital mobilisation capabilities. "On aviation, we arranged and led a QAR 4.5 billion ($1.24 billion) financing package for Qatar Airways' fleet expansion, acting as sole bookrunner, global coordinator and structuring bank. Our leading share in this syndicated transaction demonstrated our ability to mobilise large-scale capital while reinforcing our role as a trusted partner to national champions," he said. The strategic pivot comes at a time when Qatar’s economic trajectory is entering a new chapter. The country’s North Field Liquefied Natural Gas (LNG) expansion, one of the largest liquefied natural gas developments globally, is set to increase national production capacity from 77 million tonnes per annum to 126 million tonnes per annum by 2027, and further to 142 MTPA by 2030. For Qatar National Bank (QNB), the impact of this expansion is long-term and structural rather than temporary. During the construction and development phase, the bank is expected to see rising demand for project finance tied to energy facilities, transport networks, ports, and related industrial infrastructure. As capital spending accelerates across the LNG value chain, financing requirements are likely to expand accordingly. With its relationships with government-related entities, combined with its expanded regional presence, QNB plays a key role in financing large-scale LNG-linked transactions. Al-Khalifa pointed to QNB's support for Qatar's North Field expansion, which targets an 85% increase in domestic LNG production by 2030, including participation in the NGL-5 plant, a $3.2 billion joint venture to process 350 million cubic feet per day of associated gas. Technology and diversification underpin QNB's 2030 ambitions As Qatar's LNG expansion accelerates and the bank transitions to a new strategic cycle, QNB's 2030 roadmap reflects a deliberate shift from consolidating regional scale to deepening connectivity, diversifying income, and investing in the capabilities needed to finance the next phase of Qatar's economic transformation. Central to that is technology. Al-Khalifa explained, "To maintain the Bank's leading position, we recognise the importance of leveraging new and emerging technologies. We are seeing transformational change accelerating with the advent of AI." Whether that ambition translates into sustained returns will depend on execution across a more complex, multi-market operating environment. The bank expects moderate performance in 2026 as it enters the next phase of its strategic cycle. Profit growth is expected to rise from around 6% to 8%, supported by continued lending activity. Balance sheet expansion is expected to remain moderate, with loan and deposit growth projected at 7% to 9%.
