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QNB Group rated MENA region's #1 Banking brand in The Banker survey

Brand Rating of AA+ positions QNB as one of the most valued financial brands in the world

Doha, 07 February 2012 - The Banker's Top 500 Banking Brands report was published on 1 February 2012 and featured a number of leading banks and financial institutions from the Middle East and North Africa, most notably QNB Group which rose to the status of the region's most valued banking brand.

The survey is conducted every year by The Banker magazine, an affiliate publication of The Financial Times in partnership with Brand Finance, the leading specialist in the field of brand valuation research.

In the 2012 survey, QNB leaped five places to become the number 1 brand in the MENA region, and moved up 77 places to 114th place amongst the world's top 500 banking brands.

The process of assigning value to each brand takes into account the bank's size, geographical presence, reputation, gearing and brand rating. According to the brand rating calculator used in the survey, QNB is classified as an AA+ brand, or a very strong banking brand. This rating is independent of ratings assigned by credit rating agencies and represents only the health and future growth potential of the brand in intangible indicators and brand value.

QNB Group was able to deliver outstanding financial results in 2011, driven by on-going expansion across the range of its activities both domestically and internationally along with the adoption of a conservative approach to risk management that resulted in further enhancing the Group's leading position amongst financial institutions in the Middle East and North Africa region.

QNB Group's Net Profit for 2011 exceeded QR7.5 billion, representing an increase of 32% over 2010, with Total Assets increasing by 35% to reach QR302 billion. The Bank was also able to maintain a low non-performing loans ratio at 1.1% of total loans, which is considered the lowest amongst banks in the Middle East and North Africa.

Total operating income increased to QR10.2 billion, up by 34% compared to 2010, while Net interest income and income from Islamic financing activities increased substantially, up by 37% to reach QR7.8 billion. The efficiency ratio (cost to income ratio) improved to 15.7%, compared to 17.0% in 2010, one of the best ratios among financial institutions in the MENA region.

QNB Group's capital adequacy ratio also increased to 22.0% in 2011, far higher than the regulatory requirements of Qatar Central Bank and Basel Committee. The Group is keen to maintain a strong capitalisation in order to support future strategic plans.

QNB Group's market capitalisation also increased by 34% during the year to reach QR96.7 billion at year-end 2011.

QNB Group's leading role in the banking sector and the high quality of its assets, along with its capabilities to achieve sustained growth in all activities, are demonstrated clearly in its credit rating, with Standard & Poor's, Fitch and Moody's affirming the Bank's ratings during 2011, which are among the highest in the region. Also, Capital Intelligence upgraded the Bank's Financial Strength Rating from A+ to AA- and affirmed all other ratings in recognition of QNB's sound financial position, high asset quality and leading role in the banking sector.

In 2011, QNB Group completed the acquisition of a controlling stake of 70% in Bank Kesawan in Indonesia, a deal which boosted the Group's presence in South East Asia that also includes a branch in Singapore. QNB also launched its operations in Lebanon and South Sudan through the inauguration of its branches in Beirut and Juba. A fifth branch was also established in Oman, as part of the Group's strategy to expand its customer reach and provide them with global best practices in banking and financial services. With these expansions, QNB Group currently operates in 24 countries around the world through 334 branches, offices, subsidiaries and associate companies, and 7000 staff worldwide.

In January 2012, the Bank announced a Partnership Agreement with the Morocco-based Union Marocaine des Banques (UMB), with plans to acquire a majority stake of its capital.

A new 5-year strategic plan was also approved aiming to reinforce QNB's position in the region and establish it as a leading icon of the financial sector in the Middle East and Africa.

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About QNB Group
Qatar National Bank (QNB), 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%).

QNB Group has steadily grown to be among the largest banks in the Middle East and North Africa Region and is by far the leading financial institution in the country with a market share approaching 40% of banking sector assets and a distribution network of 61 branches and offices in addition to more than 200 ATMs.

QNB Group has witnessed rapid international expansion in the past few years and has established presence in over 24 countries worldwide including branches in France, Kuwait, UK, Mauritania, Oman, Singapore, Yemen and Lebanon.

The Group has also extended its regional reach by acquiring stakes in various financial institutions including 35% stake in the Jordan-based, The Housing Bank for Trade and Finance (HBTF), 24% in Commercial Bank International (CBI) based in the United Arab Emirates (UAE), 50% of the Tunisian-Qatari bank, 23% in the Iraqi-based Mansour Bank and 20% stake in Al Jazeera Finance Company in Doha. QNB Group also retains 51% stake in QNB-Syria, a private stock company established jointly with other Syrian private and public sector institutions which started operations mid November 2009 and operates today more than 15 branches in the Syrian Republic.

QNB Capital, a subsidiary of QNB Group, 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.

QNB Financial Services (QNB FS) commenced trading on the Qatar Exchange in May 2011 and is the first independently regulated, licensed brokerage unit launched by a bank in Qatar. QNB FS brokerage offers a multi-market, multi-currency trading platform with access to several GCC markets including Qatar, UAE, and Oman. It also provides a trading solution for buying and selling securities on the US and European markets. QNB FS' technology platform is enhanced by its in-house research team who provide fundamental research and analysis, sector reviews, and daily commentary on QE listed equities. Its advisory and brokerage teams are structured to service institutional investors, mutual funds, high-net worth individuals, retail and corporate clients locally, regionally, and globally.

QNB Group 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.

QNB Group has an active community support program and sponsors various social, educational, and sporting events.

For further information, please contact:
QNB's Public Relations Department
at (+974) 44252477
Fax (+974) 44252589
email: PR@qnb.com.qa
or visit QNB's website www.qnb.com.qa

© Press Release 2012