QNB Group Financial Highlights
• Net Profit up by 17.1% to QR4.1 billion
• Total Assets up by QR67.2 billion (25.5%) since June 2011 to QR330.8 billion
• Total Loans and advances up by QR84.1 billion (55.9%) since June 2011 to QR234.7 billion
• Total Customer Deposits up by QR49.6 billion (25.3%) since June 2011 to QR245.9 billion
• Earnings per share increased to QR5.9 compared to QR5.6 in June 2011
• Total Equity up by QR5.1 billion (13.0%) since June 2011 to QR44.1 billion
QNB Group, one of the largest and one of the most highly regarded financial institutions in the Middle East and North Africa region, has announced its financial results for the six months ended 30 June 2012. The group recorded a net profit of QR4.1 billion, up by 17.1% compared to the same period last year, demonstrating QNB Group's success across business activities and the ability to achieve strong growth in profitability for the benefit of shareholders.
Key indicators of the six months ended 30 June 2012:
• Robust growth and prudent management of assets and liabilities
Total assets increased by 25.5% since 30 June 2011 to reach QR330.8 billion, the highest ever achieved by the Group. This was the result of a strong growth rate of 55.9% in loans and advances to reach QR234.7 billion. Meanwhile, customer deposits recorded solid growth of 25.3% to QR245.9 billion.
• Outstanding assets quality
The Bank was able to maintain the ratio of non-performing loans to total loans at 1.1%, a level considered to be the lowest amongst banks in the Middle East and North Africa. Provisions were conservatively managed, as the coverage ratio reached 123%.
• Increased revenues with improved efficiency
Total operating income increased to QR5.7 billion, up by 23.0% compared to the same period last year, as QNB Group succeeded in achieving strong growth across the range of revenue sources. Net interest income and income from Islamic financing activities increased substantially, up by 29.7% to reach QR4.5 billion.
QNB Group continued to diversify its income sources, with net fees and commissions income increasing by 9.8% to QR659.9 million, while net gain from foreign exchange increased by 55.8% to QR315.1 million.
The efficiency ratio (cost to income ratio) stood at 16.4%, compared to 15.8% in June 2011, one of the best ratios among financial institutions in the Middle East and North Africa.
• Robust Capitalisation
Total shareholders' equity increased by 13.0% since 30 June 2011 to reach QR44.1 billion. QNB Group maintains a strong capital adequacy ratio 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.
• High Credit Ratings
The Bank has a high rating assigned to it from a number of leading rating agencies. The Bank's ratings are considered amongst the highest amongst the leading financial institutions in the region due to its strong financial position, high quality of its assets and its leading position in the financial sector.
Based on the Group's strong capitalization and high credit ratings, QNB was named one of the World's 50 Safest Banks and one of the Safest Banks in the Middle East, according to the latest update published by Global Finance in April 2012.
• Successful launch of the EMTN Program
QNB Group launched its debut bond issue under its Euro Medium Term Note Program in the international capital markets which amounted to US$1.0 billion with a 5-year maturity at a coupon rate of 3.375%. This highly successful issue received an overwhelming interest from regional and international investors.
• Ambitious plans for the future with innovative banking services and
A new 5-year strategic plan was approved which aims to make QNB Group a Middle East and Africa Icon. The new strategy aims to maintain the Group's position as the leading bank in the area by expanding and improving operations, diversifying income sources, and achieving a high return to shareholders.
In line with QNB Group's strategy for international expansion, the Bank has increased its stake in Mansour Bank in Iraq to 51%. As a result, QNB Group will effectively manage Mansour Bank and provide support to enhance its ability to offer a comprehensive range of products and services.
In line with efforts to further improve customer service through the offering of unique and advanced solutions, the Group launched a mobile near field communication payment program. This service, which is first to be offered in Qatar, allows customers to process payments through their mobile phones.
QNB Group which operates in 24 countries around the world through its network, subsidiaries and associate companies employs about 7,600 staff operating from 345 branches and offices that are supported by an ATM network that exceeds 670 machines.
Based on the Group's continuous strong performance and the expanding international presence, the bank is currently ranked as the most valuable brand in the MENA region, with a world ranking of 114 from 189 in 2011.
The Bank continues to place high emphasis on recruiting Qatari nationals and to provide them with dedicated training programs to further enhance their capabilities through the Bank's Training Centre. This has allowed the Bank to achieve a Qatarisation ratio that exceeds 50%, the highest among financial institutions in Qatar.
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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 exceeding 45% of banking sector assets.
QNB Group has witnessed rapid international expansion in the past few years and operates in 24 countries around the world through its network, subsidiaries and associate companies employing about 7,000 staff from 334 branch and offices that are supported by an ATM network that exceeds 600 machines.
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
QNB's website www.qnb.com.qa
© Press Release 2012
