Qatar National Bank Group Net Profit for 2011 Up by 32%

Doha, January 09 (QNA) -QNB Group, one of the leading financial institutions in the Middle East and North Africa has announced that the Board of Directors, during its meeting on January 9, 2012, has approved the financial results for the year ended December 31, 2011. The Group continued to record robust growth in profitability, with Net Profit for 2011 exceeding QR7.5 billion, up by 32% compared to 2010. These results, the highest ever achieved by the Group, demonstrated the Group's ability to achieve strong growth in profitability for the benefit of shareholders, as well as an outstanding success across the range of activities, the QNB Group said in a statement. Based on the strong financial results for 2011 and consistent with QNB Group s aim of maximizing return to shareholders, the Board of Directors is recommending to the General Assembly the distribution of a cash dividend of 40% of the nominal share value (QR4.0 per share) and a bonus shares of 10% of share capital (One share for every 10 shares). The financial results for 2011 along with the profit distributions are subject to Qatar Central Bank approval. Robust growth and prudent management of assets and liabilities Total assets increased by 35% to reach QR302 billion, the highest ever achieved by the Group. This was the result of a strong growth rate of 47% in loans and advances to reach QR194 billion. Meanwhile, customer deposits recorded solid growth of 21% to QR200 billion. Outstanding assets quality The Bank was able to maintain the ratio of non-performing loans to total loans at 1.1%, a level considered to be the lowest amongst banks in the Middle East and North Africa. Provisions were conservatively managed, as the coverage ratio reached 119%. Increased revenues with improved efficiency Total operating income increased to QR10.2 billion, up by 34% compared to 2010, as QNB Group succeeded in achieving strong growth across the range of revenue sources. Net interest income and income from Islamic financing activities increased substantially, up by 37% to reach QR7.8 billion. QNB Group continued to diversify its income sources, with net fees and commissions income increasing by 16% to QR1.3 billion, while net gain from foreign exchange increased by 44% to QR515 million. The efficiency ratio (cost to income ratio) improved to 15.7%, compared to 17.0% in 2010, one of the best ratios among financial institutions in the Middle East and North Africa. In line with QNB Group strategy to expand the range of its products and services, the Group launched QNB Financial Services (QNB FS) that offers customers, both corporate and individuals, a wide range of services including brokerage, research, asset management and custody services. QNB Group which operates in 24 countries around the world through its network, subsidiaries and associate companies employs about 7,000 staff operating from 334 branch and offices that are supported by an ATM network that exceeds 600 machines. At the same time, the Bank continues to place high emphasis on recruiting Qatari nationals and providing them with dedicated training programs to further enhance their capabilities through the Bank s Training Centre. During the year, over 250 Qatari staff were recruited, resulting in the Bank having a Qatarisation ratio that exceeds 50%, the highest among financial institutions in Qatar. Qatar National Bank (QNB), established in 1964 as the country s first Qatari-owned commercial bank, has an ownership structure split between the Qatar Investment Authority (50%) and the private sector (50%). QNB Group has steadily grown to be among the largest banks in the Middle East and North Africa Region and is by far the leading financial institution in the country with a market share approaching 40% of banking sector assets and a distribution network of 61 branches and offices in addition to more than 200 ATMs. QNB Group has witnessed rapid international expansion in the past few years and has established presence in over 24 countries worldwide including branches in France, Kuwait, UK, Mauritania, Oman, Singapore, Yemen and Lebanon.(QNA)