QNB Group: Continued Excellence in Q1 2026 Supported by All Segments of the Business

• The company's interest income remained stable, while the net interest margin experienced a notable improvement.​
  
• QNB Group's share price declined as much as 9% during Q1 2026.​
  
• Despite a challenging macroeconomic backdrop and a notable increase in impairments and staff expenses, net profit surged, primarily driven by a higher net interest margin, followed by commissions and fees as well as investment income.​
  

During Q1 2026, QNB Group's stock price declined by 9%, starting at 18.66 riyals per share and ending at 17.04 riyals per share by the end of the quarter. During the same time, the QSE index dropped by 5%.

Here are the key numbers:

• 
  Interest Income: 30,523 million QAR vs. 30,685 million QAR in Q1 2025 (minor YoY change).
  
• Net Interest Income: 9,430 million QAR vs. 8,727 million QAR in Q1 2025 (an 8% YoY increase).
  
• Net Profit: 4,420 million QAR vs. 4,344 million QAR in Q1 2025 (a 2% YoY increase).
  
• Earnings per Share: 0.44 QAR/share vs. 0.43 QAR/share in Q1 2025 (a 2% YoY increase).
  

In 2025, the Federal Reserve began an easing cycle, delivering a total of three interest rate cuts in response to evolving economic conditions. At present, the Fed signals one potential rate cut in 2026. The ultimate trajectory of real interest rates, however, will remain data-dependent, with heightened uncertainty around key macroeconomic indicators. The start of the war in the Gulf region made this situation even more complicated. The Qatari central bank, along with central banks across the GCC region, strictly adhered to Fed actions.

The net interest margin showed a remarkable improvement, increasing from 28% in Q1 2025 to 31%. This improvement can be primarily attributed to the impact of the aforementioned drop in interest rates, leading to lowered borrowing costs and a consequential positive effect on net profit, totaling 749 million QAR. Concerning interest income, there was a minor decline, causing a negligible adverse impact on net profit, which amounted to 46 million QAR.

Against the backdrop of a challenging macroeconomic environment, the banking sector faced heightened concerns regarding credit risk. QNB Group, responding strategically to these conditions, opted to increase impairments in higher amounts than in Q1 2025. This deliberate decision created an adverse impact on net profit of approximately 66 million Qatari riyals.

Analyzing other segments of the core business, commissions and fees contributed positively to net profit, increasing it by 132 million QAR. Investment income contributed positively by 124 million QAR. The increase in staff expenses impacted net profit negatively by 200 million QAR.

For more comprehensive information, please refer to the reliable financial information source, http://sahmik.com.