Financial Results for the Nine Months Ended 30 September 2009

Posted on : Thu, 08 Oct 2009

Financial Highlights

• Net Profit up by 4.1% to exceed QR3.1 billion

• Total Assets up by QR7.5 billion (5.2%) since September 2008 to QR153.2 billion

• Total Loans and advances and financing activities up by QR2.7 billion (3.0%) since September 2008 to QR93.8 billion

• Total Customer Deposits and unrestricted investment accounts up by QR15.3 billion (16.5%) since September 2008 to QR108.3 billion

• Total Operating income up by 9.8% to QR4.2 billion

• Total Shareholders’ Equity reached QR18.8 billion

• Net Profit for QNB Al Islami up by 10.7% to QR280.5 million

QNB Net Profit Exceeds QR3.1billion for the Nine Months Ended 30 September 2009

H.E. Yousef Hussain Kamal, the Chairman of the Board of Qatar National Bank (QNB)

H.E. Yousef Hussein Kamal, Chairman of the Board of Directors of QNB announced the Bank’s financial results for the nine months ended 30 September 2009 in which QNB’s Net Profit exceeded QR3.1 billion. The results demonstrate the Bank’s ability to consistently deliver sustained growth to its shareholders.

H.E. the Chairman added “These outstanding results reaffirm QNB’s position as Qatar’s leading financial institution and its success in achieving balanced growth in all areas of the Bank’s activities inside Qatar and overseas.

H.E. the Chairman said that QNB net profit for the nine months ended 30 September 2009 exceeded QR3.1 billion, up 4.1% on the net profit delivered in September 2008. Total assets grew since September 2008 to QR153.2 billion, representing an increase of QR7.5 billion, or 5.2%. Loans and advances and financing activities grew to QR93.8 billion, representing an increase of QR2.7 billion, or 3.0%. Customer Deposits and unrestricted investment accounts also grew by QR15.3 billion (16.5%) during the period to reach QR108.3 billion.

Net operating income increased by QR372.1 million (9.8%) to QR4.2 billion. The increase in net operating income is mainly due to the increase in net interest income and income from financing activities of QR669.2 million (32.8%) to reach QR2.7 billion. Dividend income grew by QR68.3 million (50.0%) to QR205.0 million.

Total shareholders’ equity grew since September 2008 to QR18.8 billion, representing an increase of QR1.1 billion, or 6.2%.

QNB Al Islami also succeeded in achieving excellent results during the nine months of 2009, with financing activities increasing by QR2.5 billion (40.4%) to reach QR8.6 billion. Net profit for QNB Al Islami was up by QR27.2 million (10.7%) to reach QR280.5 million. QNB Al Islami’s total assets increased by QR4.5 billion (32.6%) to reach QR18.4 billion.

Mr. Ali Shareef Al Emadi, QNB’s Group Chief Executive Officer

QNB Group Chief Executive Officer, Mr. Ali Shareef Al-Emadi said: “We are extremely pleased to report such positive growth across all QNB group activities, which is the result of prudent risk management and the effective execution of QNB’s strategic plans. The QNB Group will strive to continue this momentum in all activities across all operating regions, by continuing to provide customers with effective product and service innovation that caters to their expectations”.

These results clearly demonstrate QNB’s ability to avoid fluctuations in its profitability during the year, as the Bank was able to achieve a net profit that exceeded QR1.0 billion in each quarter during 2009.

QNB’s credit ratings from leading agencies such as Moody’s, Fitch and Capital Intelligence meanwhile continue to be among the highest in the region. In September 2009, Fitch Ratings affirmed QNB’s long-term IDR at A+ with a Stable Outlook. Standard & Poor’s (S&P) earlier this year affirmed the Bank’s long-term credit rating of A+, short-term rating of A1, and a Stable Outlook. These ratings are a reflection of the Bank’s strong financial position and its ability to cope effectively with the difficult market conditions witnessed since last year.

QNB was appointed as Co-Manager for the two sovereign bond issues that totaled QR3.0 billion which took place in April 2009 and were very well received demonstrating the strong fundamentals of Qatar and its economic prospects.

In another major transaction, QNB was appointed the General Financial Adviser and one of the initial Mandated Lead Arrangers of Qatar Telecom’s $1.5 billion credit facility intended to refinance an existing facility maturing in November 2009. The oversubscribed transaction was one of the largest credit facilities and the first Forward Start Facility executed in the GCC region so far in 2009, in addition, the Bank acted as a Co-Manager for Qatar Telecom’s recent bond issues which totaled $1.5 billion.

Given QNB’s long and established experience in managing Initial Public Offering, the Bank was appointed a Joint Lead Receiving Bank for Vodafone Qatar’s IPO. Customers also benefited from QNB’s leadership in providing a wide range of electronic services through the acclaimed EAZYLife suite of e-channels.

In collaboration with QNB, the Ministry of Health and the Civil Aviation Authority switched to the use of the e-Cash card through a Point-of-Sale (POS) system that accepts Visa, MasterCard, NAPS and e-Cash cards as the primary mode of payment, replacing the conventional revenue stamp and cash collection system.

A significant example of QNB’s risk-adjusted investment strategy working to the benefit of its customers was the selection of QNB Group managed funds, Al Watani Funds I & II and the Beit Al Mali Fund, as the best performing funds in Qatar. The Zawya Funds Monitor places QNB’s Funds atop a list of 10 Qatar-focused funds managed by local and regional institutions based on their performance during the 12 months ending 31 May 2009.

Newly formed subsidiary, QNB-Syria, having completed an oversubscribed IPO subscription in August 2009, will offer a wide range of banking products and services, initially in Damascus but covering a number of major cities in Syria by 2010 and beyond, given the Bank’s ambitious expansion plans.

In 2009, the Bank also launched a series of service enhancements to suit customers’ needs. These include the extension of its branch network to include 44 branches and offices including three mobile branches, in addition to 11 Islamic branches and offices operated by QNB Al Islami. This, the largest distribution network in Qatar, is complemented by over 160 ATMs located strategically across Qatar for ease of access.

Effective July 2009, QNB also announced numerous reductions to the fees and tariffs applicable to retail banking services in Qatar. The Bank waived minimum balance requirements for all customers holding Current, Savings, Savings Plus & Call Accounts. Platinum, Gold and Silver credit card holders also benefit from reductions of up to 50% of their annual fees, as well as the fees applicable for supplementary or replacement cards.

In order to deliver greater levels of personalization to its customers, QNB also launched the second wave of its campaign for QNB First, the Bank’s priority banking service. QNB First customers benefit from a wide range of dedicated products and services which will also be offered at QNB’s branches in London and Paris.

QNB was a main sponsor of the 7th Doha Natural Gas Conference and Exhibition, reflecting the Bank’s commitment to the country’s industrial development including the vital natural gas industry.

The Bank also participated in the Qatar Career Fair 2009, one of the most important entry-level recruiting platforms in the country, aiming to offer unique opportunities to young Qataris and help them pursue bright futures in the financial sector with the QNB Group.

During 2009, Euromoney selected QNB as Best Bank in Qatar for the second consecutive year. This award is a clear indication of QNB’s leading position in the Qatari banking sector.

As part of its continuing efforts to participate and contribute effectively in supporting the community, QNB also launched an initiative to provide employment opportunities in various areas of the Bank’s operations for people with special needs.

The Bank also continues to be a major patron of sporting events in Qatar and regularly supports traditional sports such as camel racing, as well as other sporting events throughout the year.