QNB Group Financial Results for the Year Ended December 31, 2012

  QNB Group Financial Results for the Year Ended December 31, 2012

Business Wire

DOHA, Qatar -- January 13, 2013

QNB Group continued to record robust growth in profitability, with Net Profit
for 2012 exceeding QR8.3 billion, up by 11.1% compared to 2011. These results,
the highest ever achieved by the Group, demonstrated once again its resilience
and revenue-generating capacity, as well as outstanding success in expanding
the Group’s core business activities.

Ali Shareef Al Emadi QNB GCEO (Photo: Business Wire)

Ali Shareef Al Emadi QNB GCEO (Photo: Business Wire)

The Board of Directors is recommending to the General Assembly the
distribution of a cash dividend of 60% of the nominal share value (QR6.0 per
share). The financial results for 2012 along with the profit distribution are
subject to Qatar Central Bank (QCB) approval.

Total assets increased by 21.5% to reach QR367 billion, the highest ever
achieved by the Bank. This was the result of a strong growth rate of 28.9% in
loans and advances to reach QR250 billion. Meanwhile, customer deposits
recorded a solid growth of 34.9% to QR270 billion, resulting in improved
liquidity with the loans to deposits ratio reaching 92.6% at year-end 2012.

The Bank was able to maintain the ratio of non-performing loans to total loans
at 1.3%, a level considered one of the lowest amongst banks in the Middle East
and Africa. The Group’s conservative policy in regard to provisioning
continued with the coverage ratio reaching 115% in 2012.

Total operating income including share of results of associates increased to
QR11.5 billion, up by 12.8% compared to 2011, as QNB Group succeeded in
achieving strong growth across the range of revenue sources.

The Group’s prudent cost control policy and strong revenue generating
capability allowed it to maintain its efficiency ratio (cost to income ratio)
at 16.8%, which is considered one of the best ratios among financial
institutions in the region.

Total Equity increased by 12.6% to reach QR48.0 billion as at 31 December
2012. The capital adequacy ratio reached 21.0% at year-end 2012, far higher
than the regulatory requirements of QCB and the Basil Committee.

QNB Group was able to record a strong return to shareholders, with the return
on average shareholder’s equity reaching 20.5% in 2012.

QNB Group's credit rating was affirmed during 2012 by Capital Intelligence,
Fitch, Moody’s and Standard & Poor's. QNB Group maintains one of the highest
ratings in the Middle East and North Africa (MENA) Region. The Group’s ratings
were affirmed post the announcement to acquire National Société Générale Bank
(NSGB), a reflection of the confidence in its strategy and the management of
its expansion plans.

The Group’s high credit ratings and outstanding asset quality allowed it to be
recognized as one the world’s 50 safest financial institutions by Global

During 2012, QNB Group completed a number of transactions to further solidify
its presence in the MENA Region. The most significant transaction was the
agreement with Société Générale to acquire its full stake of 77.17% in NSGB,
the second largest private bank in Egypt.

The Bank has also concluded the acquisition of a 49% stake in the Bank of
Commerce and Development in Libya, the country’s leading private sector bank.
The Group’s stake in a number of institutions was also increased. This
included increasing ownership in the UAE-based Commercial Bank International
(CBI) from 24% to 40% and the Iraq-based Mansour Bank from 23% to 51%.

With operations in 24 countries across Asia, Europe and Africa, the Group is
in a strong position to reach its 2017 vision to become a Middle East and
Africa Icon.

During 2012, two issuances under the Bank’s Euro Medium Term Note Programme
(EMTN Programme) were successfully launched each at US$1.0 billion, with very
attractive rates. As part of ongoing efforts to diversify the investor base,
the London Certificates of Deposit (CD) programme was effectively launched
during the year. The Bank has also successfully closed a US$1.8 billion
three-year term loan facility at competitive rates.

Currently, nearly 8,800 staff are employed by QNB Group, its subsidiaries and
associate companies having a branch network comprising almost 400 branches and
offices, with an ATM network that exceeds 800 machines. Upon the completion of
the regulatory approvals to acquire NSGB, the number of staff will increase to
almost 13,000 with the branch network at more than 560 supported by 1,150 ATM

To view the full report and tables please click here.

Source: ME NewsWire

The release can be viewed online: http://www.me-newswire.net/news/6714/en

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Maha Mubarak Ali, +974-55879260
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