QNB Group and Bank Kesawan Sign Letter of Intent for planned Rights Issue

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01 September, 2010 - Qatar National BankQatar National Bank Group (QNBQNB) and Bank Kesawan recently signed a "Letter of Intent" which, when complete, would make QNBQNB the "Standby Buyer" for a planned Rights Issue and may result in QNBQNB Group becoming the controlling shareholder of the Indonesia-based bank.

The conclusion of the transaction remains subject to obtaining all relevant regulatory and shareholder approvals in Indonesia and upon the completion of an already initiated due diligence process, by an independent third party. The rights issue is expected to close in the first quarter of 2011.

QNBQNB

At 30 June 2010, QNBQNB's net profit reached QR2.7 billion, up 30.8% on the net profit delivered in June 2009. During the same period, TotalTotal assets grew to QR186.0 billion, representing an increase of 26.5%. TotalTotal equity attributable to the Bank's shareholders also grew since June 2009 to QR21.1 billion, representing an increase of QR3.4 billion, or 19.0%.

QNBQNB

The Letter of Intent with Bank Kesawan supports QNBQNB's international expansion plans, which in recent years have become an integral part of the Bank's growth strategy and commitment to diversify the sources of its revenue by exploring new and promising opportunities.

QNBQNB reinforced its international position by opening its first branch in Mauritania recently and obtaining regulatory approval to operate in Lebanon.

QNBQNB Group provides a full range of banking services and products for individuals, corporate entities and governments. These include conventional retail, corporate, treasury, private (QNBQNB Private) and investment banking (QNBQNB Capital) services, as well as a broad range of bespoke Islamic banking solutions through QNBQNB Al Islami, the Group's Islamic banking arm, which is one of the fastest growing Islamic banking windows in the GCC region.

Bank Kesawan was founded in 1913 and is headquartered in Jakarta, Indonesia. It is one of the leading financial institutions in the country and is currently targeting growth to meet the growing demands of one of the fastest growing emerging market economies in Asia.

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About QNB
Qatar National BankQatar National Bank (QNBQNB), established in 1964 as the country's first Qatari-owned commercial bank, has an ownership structure split between the Qatar Investment Authority (50%) and the private sector (50%).

QNBQNB has steadily grown to be among the largest banks in the region and is by far the leading financial institution in the country, with a market share approaching 40% of banking sector assets.

QNBQNB offers a full range of Retail, Corporate, Investment, Treasury, Wealth Management, and Islamic Banking products and services for individuals, corporate institutions and government entities in Qatar as well as internationally.

QNBQNB has the largest distribution network in Qatar, comprising 44 branches and offices (including 3 mobile branches), in addition to 12 Islamic branches and offices operated by QNBQNB Al Islami, and more than 160 ATMs.

QNBQNB was the first conventional bank in Qatar to offer Shari'a-compliant banking products and services through QNBQNB Al Islami, established in 2005.

QNBQNB's international presence is rapidly expanding to include new locations around the world to supplement the long established branches in London and Paris. Currently QNBQNB has presence in 23 countries including branches in Yemen, Oman Kuwait & Singapore as well as Representative Offices in Iran & Libya. An Islamic branch was recently inaugurated in Sudan, offering a full range of Islamic banking services and products.

QNBQNB has also extended its regional reach by acquiring shares in various financial institutions including 34.3% stake in the Jordan based, The Housing Bank for Trade and Finance (HBTF), 23.8% of the shares of Commercial Bank International (CBI) based in the United Arab Emirates (UAE), 50% of the Tunisian-Qatari bank and 20% stake in the Doha-based Al Jazeera Islamic Company. QNBQNB also retains 49% stake in QNBQNB-Syria, a private stock company established jointly with other Syrian private and public sector institutions which started operations mid November 2009.

"QNBQNB Capital" was established in 2008, providing an array of investment banking services to corporate, government and institutional clients within Qatar and globally. These include one of the best corporate finance teams in the GCC region offering extensive transaction experience, in depth advisory services - including mergers and acquisitions, equity, debt and project advisory - as well as first-class research capabilities.

QNBQNB is among the highest rated regional banks from leading credit rating agencies including Standard & Poor's, Moody's, Fitch, and Capital Intelligence. The Bank has also been the recipient of many awards from leading international specialized financial publications for its innovative products, services and remarkable performance.

QNBQNB has an active community support program and sponsors various social, educational, and sporting events

© Press Release 2010