QNB net profit up 62% to QR3.003m

For the first time in its history, QNB was able to exceed the QR3.0bn profit barrier thanks to its success in diversifying its income resources and the maintenance of a strong efficiency ratio (total costs to total income).

Highlighting the details of the September 2008 financial results, H.E. the Chairman stated that net profit reached a record QR3,003m, up QR1,148m (61.9%) on the QR1,855m delivered in September 2007. Total assets grew since September 2007 to QR145.6bn, representing an increase of QR50.2bn, or 52.6%.

Loans and advances and financing activities grew to QR91.0bn, representing an increase of QR27.1bn, or 42.5%. Customer Deposits and unrestricted investment accounts also grew by QR32.9bn (54.8%) during the period to reach QR92.9bn.

Net operating income increased by QR1.317m (51.7%) to QR3,861m, with a substantial increase in most sources of income. Net interest income and income from financing activities increased by QR604.1m (41.7%) to reach QR2.054m.

Net fees and commissions increased by QR217.4m (38.7%) to QR779.7m, reflecting the success in diversifying sources of income. At the same time, dividend income grew by QR15.1m (12.4%) to QR136.7m, and net gains from dealing in foreign currencies grew by QR113.0m (82.5%) to QR249.9m.

Total equity at 30 September 2008 amounted to QR17.7b. As a result of the improvement in the Bank's performance, Interim earnings per share increased from QR9.5 in September 2007 to QR12.7 in September 2008.

QNB Al Islami succeeded in achieving excellent results during the nine months ending 30 September 2008, with financing activities increasing by QR2.7bn (81.3%) to reach QR6.1bn. Net profit for QNB Al Islami was up by QR151.2m (148%) to reach QR253.3m. QNB Al Islami total assets increased by QR7.5bn (119%) to reach QR13.8bn.

Commenting on the interim results, Mr. Ali Shareef Al-Emadi, QNB's Group Chief Executive Officer, said:

"QNB's results for the first nine months of 2008 are a reflection of the sustained growth in activities across business lines in Qatar and abroad, along with the successful implementation of its strategy."

As part of the implementation of its international expansion plans QNB acquired a 50% stake in the Tunisian-Qatari Bank and laid the Foundation Stone for QNB's Tower in Khartoum - Sudan. Other recent moves include the acquisition of a 23.8% stake in the United Arab Emirates-based Commercial Bank International and the increase in its stake to 33.2% in the Jordan-based Housing Bank for Trade and Finance.

In addition, QNB's Representative Office in Singapore was transformed into a full fledged branch enabling it to offer a wide range of products and services to customers in Singapore and the region.

QNB's extensive experience of managing IPOs is evident in the tremendous faith shown in the Bank's capabilities by leading Qatari companies. Qatari customers and expatriates utilized QNB's electronic channels, EAZYinternet, to subscribe to the rights issues of Barwa Real Estate Company, Qatar Navigation, QTel, Doha Insurance, First Finance, and Qatari German Medical Company.

QNB was also appointed by Qatar Petroleum (QP) as the Lead Receiving Bank of its IPO for Gulf International Services (GIS), a Qatari shareholding company. QNB was also selected by Industries Qatar, QTel, Woqod, Barwa Real Estate, Al Meera Co-operative, and Ijara to distribute cash dividends.

QNB launched EAZYmobile, the first mobile banking service for customers in Qatar. EAZYmobile is an instant, reliable and flexible addition to the widely acclaimed EAZYLife banking services. EAZYmobile provides QNB customers with a wide range of services including bill payments, transfers, statements, news, and much more.

These efforts to enhance customer service experience and innovative product offerings led to QNB being awarded the title of "Best Retail Bank in Qatar in 2008" from The Asian Banker.

Recently the Main Branch was converted to a Corporate Banking branch in order to provide corporate customers with dedicated services at a convenient location. Work is currently underway to establish three additional dedicated Corporate Banking branches.

As part of its efforts to provide financial advisory services to corporate clients, a new entity - QNB Capital was also recently established.

In recognition of QNB's dominant position in the Qatari financial sector, its ability to deliver strong financial results, its strong capitalization and high assets quality, Capital Intelligence raised the Bank's long-term foreign currency rating to AA- from A+ and the short-term rating to A1+ from A1. At A+, QNB's rating from Standard & Poor's is the highest and is on par with a small group of leading financial institutions in the region.

QNB Al Islami launched a new product under the name of "Vehicle Lease" in Qatar, thereby being the first Islamic bank in Qatar to offer it. This will allow the financing of both new and used vehicles at very competitive profit rates which are considered the lowest in the Islamic and commercial banking market in the State of Qatar. A new product was launched - Tawlia, further increasing the Bank's range of Islamic product offerings. With the addition of Qmiles, QNB Al Islami is the first and only Islamic bank in Qatar to provide such a service to its credit card holders.

To develop its Qatari human resources and ensure they are well equipped to take on future challenges, a new Learning & Development Centre was established to address and meet all present and future training and developmental needs.

Further, in order to provide employment opportunities for all eligible Qatari professionals and fresh graduates, QNB held for the second time a Career Day. This event has further increased QNB's Qatarisation ratio, which is the highest in the banking sector.