Financial Results for the Nine Months Ended 30 September 2011

Posted on : Wed, 05 Oct 2011

QNB Group Financial Highlights

• Net Profit up by 30.4% to QR5.4 billion
• Total Assets up by QR85.4 billion (43.9%) since September 2010 to QR280.1 billion
• Total Loans and advances and financing activities up by QR44.1 billion (35.5%) since September  2010 to QR168.1 billion
• Total Customer Deposits and unrestricted investment accounts up by QR46.7 billion (31.4%) since September  2010 to QR195.3 billion
• Earnings per share increased to QR9.2 compared to QR7.7 in September 2010
• Total Equity up by QR18.0 billion (79.0%) since September  2010 to QR40.8 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 nine months ended 30 September 2011. The group recorded a net profit of QR5.4 billion, up by 30.4% compared to the same period last year, a crystal-clear indicator of QNB Group's capacity to deliver a strong growth across the range of its activities along with the delivery of a solid growth in profitability for the benefit of shareholders.

For the nine months ended 30 September 2011, net profit reached QR5.4 billion, up 30.4% on the net profit delivered in September 2010.  Total assets grew since September 2010 to QR280.1 billion, representing an increase of QR85.4 billion, or 43.9%.  Loans and advances and financing activities grew to QR168.1 billion, representing an increase of QR44.1 billion, or 35.5%. Customer deposits and unrestricted investment accounts also increased by QR46.7 billion (31.4%) during the period to reach QR195.3 billion.

Net operating income increased by QR1.7 billion (31.0%) to reach QR7.1 billion. This was mainly due to the increase in net interest income and income from financing activities by QR1.4 billion (34.0%) to reach QR5.4 billion.  Other operating income also grew by QR318.8 million (22.3%) to QR1.7 billion.

Total equity grew since September 2010 to QR40.8 billion, representing an increase of QR18.0 billion, or 79.0%. Capital adequacy ratio stood at 20.9%, significantly higher than both the Basel requirements and the Qatar Central Bank minimum requirements. Earnings per share also increased to QR9.2 in September 2011 from QR7.7 in September 2010.

As part of QNB Group’s international expansion plans, the Bank completed its acquisition of PT Bank Kesawan, having a controlling stake of 70% ownership.  This transaction will further enhance the QNB Group’s presence in South East Asia, which already includes a branch in Singapore. Operations in Lebanon were launched following the inauguration of the branch in Beirut in early June. The Group also inaugurated its fifth branch in Oman as part of its expansion strategy in the country to reach out to its customer base and provide dedicated services.

Amongst other achievements so far during 2011 was the completion of the Rights Issue amounting to QR12.7 billion, which was fully subscribed.  The Group also continued to diversify the range of products and services offered with the launch of QNB Financial Services (QNB FS) that provides a wide range of services including brokerage, research and financial advisory.  QNB FS is planning to expand its services to include asset management and custody.

Also, QNB Group announced that it plans to develop a Euro Medium Term Note Program (EMTN Program) with a total amount of USD7.5 billion. The proceeds from this program will be utilized in the Bank’s normal operations.

During the first nine months of the year, the Bank’s credit ratings, which are among the highest in the region, were affirmed by Fitch, Standard & Poor’s and Moody’s.  Further, in a move that captures the Bank’s strong financial position, high asset quality and leading position in the banking sector, Capital Intelligence upgraded QNB Group's Financial Strength Rating from A+ to AA-, while affirming all other ratings.

The Bank places the upmost importance to further enhancing the range of dedicated products and services to its customers along with expanding its network that consists of 60 branches and service centers and over 200 ATMs, which is the largest network in Qatar.