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QNB Group Financial Highlights

  • Net Profit QR7.5 billion increased by 32% on last year
  • Total Assets QR302 billion increased by 35% since December 2010
  • Total Loans and advances QR194 billion increased by 47% since December 2010
  • Total Customer Deposits QR200 billion increased by 21% since December 2010
  • Earnings per share QR12.5 compared to QR10.6 last year
  • Total Equity QR43 billion increased by 72% since December 2010


QNB Group, one of the leading financial institutions in the Middle East and North Africa, announced that the Board of Directors, during its meeting on January 9, 2012, has approved the financial results for the year ended December 31, 2011.

The Group continued to record robust growth in profitability, with Net Profit for 2011 exceeding QR7.5 billion, up by 32% compared to 2010. These results, the highest ever achieved by the Group, demonstrated the Group's ability to achieve strong growth in profitability for the benefit of shareholders, as well as an outstanding success across the range of activities.

Based on the strong financial results for 2011 and consistent with QNB Group’s aim of maximizing return to shareholders, the Board of Directors is recommending to the General Assembly the distribution of a cash dividend of 40% of the nominal share value (QR4.0 per share) and a bonus shares of 10% of share capital (One share for every 10 shares). The financial results for 2011 along with the profit distributions are subject to Qatar Central Bank approval.

Key indicators of the 2011 financial results


Robust growth and prudent management of assets and liabilities

Total assets increased by 35% to reach QR302 billion, the highest ever achieved by the Group. This was the result of a strong growth rate of 47% in loans and advances to reach QR194 billion. Meanwhile, customer deposits recorded solid growth of 21% to QR200 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 119%.


Increased revenues with improved efficiency

Total operating income increased to QR10.2 billion, up by 34% compared to 2010, 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 37% to reach QR7.8 billion.
QNB Group continued to diversify its income sources, with net fees and commissions income increasing by 16% to QR1.3 billion, while net gain from foreign exchange increased by 44% to QR515 million.
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 Middle East and North Africa.

Robust Capitalisation

The completion of the Rights Issue amounting to QR12.7 billion, which was fully subscribed, increased total shareholders’ equity by 72% to reach QR43 billion as at 31 December 2011. Despite this large growth in shareholders' equity, QNB Group was able to record a strong return to shareholders, with the return on average shareholder’s equity reaching 24.8% in 2011, while earnings per share increased to QR12.5, compared with QR10.6 in 2010.
As a result of the strong growth in shareholders’ equity, QNB Group's capital adequacy ratio 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.
Due to the high level of confidence that investors have in QNB Group, the market capitalisation has increased by 34% during the year to reach QR96.7 billion at year-end 2011.

High Credit Ratings

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, were 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.

Strong international expansion

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 its branches, subsidiaries and associate companies.

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.
QNB Group also finalised preparations for a Euro Medium Term Note Program (EMTN Program), amounting to USD7.5 billion. Proceeds from this program will be utilised in the Bank’s normal operations.

In line with QNB Group strategy to expand the range of its products and services, the Group launched QNB Financial Services (QNB FS) that offers customers, both corporate and individuals, a wide range of services including brokerage, research, asset management and custody services.

QNB Group which operates in 24 countries around the world through its network, subsidiaries and associate companies employs about 7,000 staff operating from 334 branch and offices that are supported by an ATM network that exceeds 600 machines.

At the same time, the Bank continues to place high emphasis on recruiting Qatari nationals and providing them with dedicated training programs to further enhance their capabilities through the Bank’s Training Centre.  During the year, over 250 Qatari staff were recruited, resulting in the Bank having a Qatarisation ratio that exceeds 50%, the highest among financial institutions in Qatar.

 

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