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H.E. the Chairman added, "These outstanding financial results are a reflection of QNB's success in achieving balanced growth through the effective execution of the Bank's strategic plans in all areas of the activities inside Qatar and overseas."
H.E. the Chairman said that QNB achieved net profit for the six months ended 30 June 2009 of QR2.1bn, up 11.3% on the net profit delivered in June 2008. Total assets stood at QR147.1bn as at 30 June 2009. Loans and advances and financing activities stood at QR82.9bn as at 30 June 2009. Customer deposits and unrestricted investment accounts also reached QR102.8bn as at 30 June 2009.
Net operating income increased by QR365.1m (15.4%) to exceed QR2.7bn. The increase in net operating income is mainly due to the increase in net interest income and income from financing activities of QR548.9m (44.9%) to reach QR1.8bn.
Net fees and commission income grew by QR7.9m (1.7%) to QR478.0m. Dividend income grew by QR46.4m (34.3%) to QR181.6m.
Total equity as at 30 June 2009 amounted to QR17.7bn. The Bank was able to increase the earnings per share to QR6.9 compared to QR6.3 for the same period last year.
QNB Al Islami also succeeded in achieving excellent results during the six months of 2009, with financing activities increasing by QR1.8bn (30.8%) to reach QR7.8bn. Net profit for QNB Al Islami was up by QR33.8m (22.4%) to reach QR184.8m.
Mr. Ali Shareef Al-Emadi, QNB's Group Chief Executive Officer, said:
"June 2009 results exceeded the strong performance delivered in the same period last year demonstrating QNB's ability to deliver consistent growth across the range of its activities while effectively managing risk. These excellent results are also a reflection of enhancement to service quality and by providing customers with distinctive and innovative products that cater to their expectations."
QNB's credit rating remains one of the highest in the region, with Standard & Poor's (S&P) affirming in April 2009 the long-term credit rating of A+, short-term rating of A1, with a Stable Outlook.
This affirmation is a reflection of the Bank's strong financial position and its ability to cope effectively with a more challenging operating environment. The Bank also holds high ratings from other leading rating agencies such as Moody's, Fitch and Capital Intelligence.
In June 2009, Euromoney selected QNB as Best Bank in Qatar for the second consecutive year. This award is a clear indication of the Bank's leading position in the Qatari banking sector.
QNB was appointed as Co-Manager for two sovereign bond issues that totaled QR3.0bn which took place in April 2009 which were very well received demonstrating the strong fundamentals of Qatar and its economic prospects.
In another major transaction, QNB was appointed as the General Financial Adviser and one of the initial Mandated Lead Arrangers to Qatar Telecom (Qtel) $1.5bn 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 recent bond issues which totaled $1.5bn.
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.
The newly formed subsidiary Qatar National Bank Syria would start its IPO to private investors on July 12 2009. QNB-Syria will offer a wide range of banking products and services, from its Syrian headquarters in Damascus. Also in the international front, QNB's Paris Branch moved to a new location owned by the Bank in the French capital.
During the first half of 2009, the Bank launched numerous promotions to ensure its customers have enhanced access to retail banking services. These include the adoption of additional evening operating hours at selected branches across Qatar while at the same time increasing the ATM network.
The Bank has also established the QNB Card Centre which is dedicated to centralizing and fulfilling all requests and services related to QNB credit, debit and payment cards as well as other related services.
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.
Reflecting QNB commitment as a supporter of major events that contribute the country's economic development, QNB was the Diamond Sponsor of the Third Qatar Economic Forum.
QNB was also a major sponsor of the First National Conference for Internal Auditors in Qatar that took place in April 2009 which promoted the need and importance of various aspects of corporate governance and various risks and controls including information technology security risks, controls and business continuity; as well as the detection and prevention of fraud.
QNB was a main sponsor of the 7th Doha Natural Gas Conference and Exhibition, reflecting the Bank's commitment for 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.
QNB also emphasized its commitment to the community by participating as a Strategic Partner in the first Qatar Corporate Social Responsibility (CSR) conference, which discussed ideas and strategies to develop and promote this sector which is vital to the State of Qatar and the region.
Also, in partnership with the Social Development Center (SDC), the Bank recognized the community service initiatives of various Qatari volunteers and organizations at the QNB Volunteer Awards for 2008.
The Bank continues to be a major patron of sporting events in Qatar including the annual Arabic traditional sport of camel racing and the annual ExxonMobil Qatar Open tennis tournament.
Posted by Rana Mesbah
