Financial Results for the Six Months Ended 30 June 2011

Posted on : Wed, 06 July 2011

QNB Group Financial Highlights

• Net Profit up by 30.1% to QR3.5 billion
• Total Assets up by QR77.6 billion (41.7%) since June 2010 to QR263.6 billion
• Total Loans and advances and financing activities up by QR32.9 billion (28.0%) since June 2010 to QR150.5 billion
• Total Customer Deposits and unrestricted investment accounts up by QR57.1 billion (41.0%) since June 2010 to QR196.3 billion
• Earnings per share increased to QR6.2 compared to QR5.0 in June 2010
• Total Equity up by QR17.7 billion (83.3%) since June 2010 to QR39.0 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 first half of 2011. The group recorded a net profit of QR 3.5 billion, up by 30.1% 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 six months ended 30 June 2011, net profit reached QR3.5 billion, up 30.1% on the net profit delivered in June 2010.  Total assets grew since June 2010 to QR263.6 billion, representing an increase of QR77.6 billion, or 41.7%.  Loans and advances and financing activities grew to QR150.5 billion, representing an increase of QR32.9 billion, or 28.0%. Customer deposits and unrestricted investment accounts also increased by QR57.1 billion (41.0%) during the period to reach QR196.3 billion.

Net operating income increased by QR1.1 billion (30.4%) to reach QR4.6 billion. This was mainly due to the increase in net interest income and income from financing activities by QR895.7 million (34.9%) to reach QR3.5 billion.  Other operating income also grew by QR177.8 million (18.4%) to QR1.1 billion.

Total equity grew since June 2010 to QR39.0 billion, representing an increase of QR17.7 billion, or 83.3%. Also earnings per share increased to QR6.2 in June 2011 from QR5.0 in June 2010.

QNB Group has continued the international expansion plans during the first half of 2011. QNB Group completed its acquisition of PT Bank Kesawan, having a controlling stake of 70% ownership.  This transaction will further enhance the Bank’s presence in South East Asia, which already includes a branch in Singapore. The Group also launched its operations in Lebanon 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 the other QNB Group achievements during the first half of 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.

In a move that demonstrates QNB Group's strong financial position, Capital Intelligence upgraded QNB Group's Financial Strength Rating from A+ to AA- and affirmed all other ratings, which are among the highest in the region. Standard & Poor's, Moody’s and Fitch have also affirmed QNB Group's rating in recent months.

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 61 branches and offices in addition to over 195 ATMs, which is the largest network in Qatar.