Yousef Hussein Kamal, Chairman of Qatar National Bank (QNB), announced the outstanding financial results achieved by the Bank for the third quarter of 2006, ending September 30th, 2006.
The Chairman said that QNB achieved net profits for the nine months ended 30th September 2006 of QR1,606 million, up QR433.9 million (37%) on the QR1,172 million delivered in 30th September 2005. Total operating income increased by QR436.1 million (28.1%) to QR1,988 million. The increase in total operating income is mainly due to the increase in net interest income and income from Islamic financing of QR288.0 million (30.6%) to reach QR1,229 million and the increase in other income of QR148.2 million (24.3%) to reach QR759.0 million.
Net Fees and ccommissions grew by QR75.5 million (27.2%) to QR353.0 million. At the same time, dividend income grew by QR20.6 million (31.4%) to QR86.1 million, reflecting high dividend distribution of the Bank’s Doha Securities Market (DSM) equity portfolio. Net Gains from dealing in foreign currencies grew by QR35.4 million (79.9%) to QR79.7 million.
Total assets grew since 30th September 2005 to QR69.6 billion, representing an increase of QR22.4 billion, or 47.5%.
Loans and advances grew during the same period to QR41.6 billion, representing an increase of QR11.7 billion, or 39.3%. Customer Deposits and unrestricted investment accounts also grew by QR22.0 billion (63.7%) to reach QR56.5 billion.
Total shareholders’ equity at 30th September 2006 amounted to QR8.4 billion, with total market capitalization of the Bank’s share reaching QR34 billion.
Interim earnings per share increased from QR9.0 in 30th September 2005 to QR12.4 in 30th September 2006.
Commenting on the spectacular third quarter financial results, the Chairman said, “The year 2006 proved to be a truly outstanding year for QNB. We have been significantly expanding our operations on corporate, retail, and Islamic banking fronts, a strategy that has proven to be a rewarding one.”
“With these financial results, I believe QNB has cemented its position as the leading bank in Qatar, and hopefully, with the efforts of the Bank’s forward-looking management that seeks to achieve outstanding results for shareholders' and customers who have entrusted us with their confidence, we will continue to enjoy the lead in the years ahead” he added.
Mr. Ali Shareef Al Emadi, QNB’s Acting Chief Executive, attributed the outstanding financial numbers to the bank’s investment diversification policy, a strategy that allowed the bank to play a vital role in various sectors of the economy. “We have introduced a plethora of innovative products and services to the market throughout the year,” Mr. Al Emadi said.
“We have also signed various ground-breaking agreements with different partners including government, real estate, and local businesses. Worthy of mention in this regard is the one billion Qatari riyals financing agreement we signed recently with Barwa Real Estate Company and the Service Level Agreement we reached with The Group Securities for online transactions, and the sports sponsorship agreement we signed with Qatar National Olympic Committee,” he added.
The Bank’s international expansion plan took a great boost during the third quarter of this year. QNB signed agreements to open Representative Offices in Singapore and Libya and a Branch in Yemen, and is working on establishing a presence in several other countries.
Al Emadi also emphasized QNB’s leading role in Islamic Banking with its Branch, Al Watani Al Islami. “QNB continues to provide its customers with first rate Islamic Banking services. The Bank was the lead mandated manager for the first corporate Sukuk issue for the benefit of Qatar Real Estate Investment Company. In addition, QNB and QNB al Islami have signed a Memorandum of Understanding with Al Meera Hypermarket chain in Qatar to make QNB services more accessible to Al Meera customers.”
QNB’s first class banking performance has certainly not gone unnoticed. The Bank bagged three prestigious awards presented by internationally renowned magazine, Global Finance, during the Annual Meetings of the Board of Governors of the International Monetary Fund (IMF) and World Bank. The three awards named QNB as Best Bank in Qatar, Best Trade Finance Bank in Qatar, and Best Foreign Exchange Bank in Qatar. Global Finance selected QNB for the awards based on a vast array of criteria including growth in assets, profitability, strategic relationships, customer service, competitive pricing and innovative products.
QNB also received the JPMorgan Chase 2006 Quality Recognition Award for its consistent high quality performance and standards achieved by the Operations Management and staff in the area of International Funds Transfers.
In its latest mandate, QNB is a partner in updating the State's institutions and developing its abilities by signing an agreement with several government institutions to adopt the Points of Sale (POS) payment method using the exclusively issued QNB e-Cash card.
Mr. Ali Shareef Al Emadi promised both customers and investors that QNB’s success story will continue in the future. “For our customers, we promise to introduce a series of pioneering products and services. As for our shareholders, we are always on the lookout for ways to maximize their returns on investment.”
QNB remains highly committed to help improve the quality of life for Qatar residents on a number of fronts. Every year it provides substantial donations that support a range of activities in the sports, education, arts and culture and health sectors, in addition to charitable causes.
With Doha scheduled to host in December the largest sporting event ever in Asia, the 15th Asian Games in December 2006, QNB signed a QR 36.5 million partnership agreement with DAGOC enabling the Bank to serve as the event’s Official Bank.
The Bank is also a major sponsor for local and international sports events representing Qatar’s most popular sports. Recently the Bank signed the largest sponsorship agreement with Qatar National Olympic Committee (QNOC) to be the exclusive sponsor of football, basketball, volleyball and handball.
QNB continued to be an enthusiastic supporter of the Qatar Foundation, and the Social Development Centre, enabling them to deliver various socially responsive programs that were of great benefit to the Qatari society.
Despite its international expansion, QNB continued its rapid pace employing qualified Qatari citizens into all sections and divisions of the Bank. Currently, 40% of QNB's work force are Qataris.
