Press Release Financial Results For The Three Months Ended 31 March 2013Qatar National Bank SAQ Tel: (+974) 4440 7407P.O. Box 1000, Doha, Qatar Fax: (+974) 4441 3753 qnb.com.qa
QNB Groups Key Financial Indicators• Net Profit exceeded QR2.1 billion, up by 6.7% from same period last year• Total Assets stood at QR380 billion, up by 22.2% from March 2012• Total Loans and Advances up by 28.7% from March 2012 to reach QR259 billion• Total Customer Deposits up by 28.2% from March 2012 to reach QR280 billion• Earnings Per Share reached QR3.1, compared to QR2.9 in March 2012• Total Shareholders Equity increased to QR46 billion, up by 9.3% from March 2012.
QNB Group, the leading financial institution in the Middle East and NorthAfrica region, has announced its financial results for the three months ended 31March 2013. A net profit of QR2.1 billion was achieved, up by 6.7% comparedto the same period last year, demonstrating QNB Group’s success in achievingrobust growth across business activities and the ability to record a strong growthin profitability for the benefit of shareholders.Key indicators of the financial results for the three months ended 31March 2013are shown below. These results do not include financial results of NSGB- Egypt.QNB Group has recently concluded the acquisition of a controlling stake inNSGB amounting to 97.12%. It is anticipated that the incorporation of thefinancial results of NSGB will be completed during the second quarter of 2013. Robust balance sheet growthTotal assets increased by 22.2% from March 2012 to reach QR380 billion, thehighest ever achieved by the Bank. This was the result of a strong growth rate of28.7% in loans and advances to reach QR259 billion, while customer depositsincreased by 28.2% to QR280 billion. Maintenance of an outstanding assets qualityThe Bank was able to maintain the ratio of non-performing loans to gross loansat 1.4%, a level considered one of the lowest amongst banks in the Middle Eastand Africa, reflecting the high quality of the Group’s loan book and the effectivemanagement of credit risk. The Group’s conservative policy in regard toprovisioning continued with the coverage ratio reaching 119% in March 2013.
Increased revenues with improved efficiencyTotal operating income, including the share of results of associates, increased toQR3.0 billion, up by 5.5% compared to March 2012, demonstrating QNBGroup’s success in achieving strong growth across the range of revenue sources.Net interest income increased by 4.7% to reach QR2.4 billion, with net fees andcommissions and net gain from foreign exchange reaching QR350 million andQR172 million, respectively, reflecting success in diversifying sources ofincome.The Group’s prudent cost control policy and strong revenue generatingcapability allowed it to maintain efficiency ratio (cost to income ratio) of 17.7%,which is considered one of the best ratios among financial institutions in theregion. Robust capitalisationTotal Equity increased by 9.3% from March 2012 to reach QR46 billion as at 31March 2013. The capital adequacy ratio stood at 20.5% as at 31 March 2013, farhigher than the regulatory requirements of QCB and the Basel Committee. TheGroup is keen to maintain a strong capitalisation in order to support futurestrategic plans. Significant expansion of international presenceDuring the first quarter of 2013, QNB Group has successfully completed theacquisition of a controlling stake in NSGB amounting to 97.12%, whichincluded the full stake of Société Générale – France amounting to 77.17% alongwith 19.95% acquired from other shareholders.This acquisition is considered one of the largest in the Middle East and is in linewith QNB Group’s strategy to expand its presence in selected markets in the
region that have a strong growth potential. This acquisition is an important stepfor QNB Group to realise its vision of being a Middle East and Africa Icon by2017.NSGB has a solid financial position and a strong standing in Egypt’s bankingsector, with operations throughout the country.The announced results of QNB Group do not include financial results of NSGB,which are anticipated to be incorporated during the second quarter of 2013. High credit ratingsQNB Group has maintained its credit rating, which is considered as being one ofthe highest in the region, with various rating agencies affirming the Bank’srating during the first quarter of 2013. This is as a result of QNB Group’s strongfinancial position, high quality of its assets and leading position in the financialsector.As a result of the Bank’s high credit ratings and outstanding asset quality, it wasselected as one the world’s 50 safest financial institutions by Global Finance.Based on the Group’s continuous strong performance and the expandinginternational presence, the bank is currently ranked as the most valuable brandin the MENA region, with a world ranking of 120. Innovative products and servicesIn line with ongoing efforts to expand the range of products and services, QNBFirst was launched across all five branches in Oman. The introduction of thiselite and exclusive service for affluent customers is designed to meet their highexpectation, which is provided by a dedicated and highly experienced team. TheGroup aims to roll out this service during this year to a number of countries inthe region where it operates.
Staff development remains a key priorityWith the addition of NSGB, QNB Group’s presence through its subsidiaries andassociate companies increased to 25 countries providing a comprehensive rangeof advanced products and services. The total number of staff exceeded 13,000operating from over 560 locations, with an ATM network exceeding 1,150machines.The Bank continues to place high emphasis on recruiting Qatari nationals andprovide them with dedicated training programs to further enhance theircapabilities. This has resulted in the Bank having a Qatarisation ratio thatexceeds 50%, the highest among financial institutions in Qatar.