Qatar Economic Review 2006(September) - QNB

12. Qatar National BankQatar National Bank (QNB) was established in 1964 as the country’s first Qatari-owned commercialbank, and has steadily grown to be the largest bank in Qatar with 37 local branches and offices and awell connected network of 97 ATM’s. QNB also has an international presence with branches in Londonand Paris. QNB subsidiary Ansbacher Holdings was the first financial institution to be granted a licenceto operate in the Qatar Financial Centre and provides a wide range of wealth management services inthe region and internationally.QNB achieved remarkable success in 2005 on varied fronts. In April 2005, QNB was the first commercialbank in Qatar to launch an Islamic branch, with fully compliant Islamic services. In September 2005,QNB was the first commercial bank to launch a mutual fund - Al Watani Fund - catering to the needs ofall - Qatari nationals, residents, non-residents, and private or institutional investors. Further in September2005, QNB partnered with the Doha Asian Games Organising Committee (DAGOC) to be the officialbank of the Asian Games in 2006, thereby providing the best banking services to the athletes, officials,spectators and media representatives participating in the Asian Games. QNB continues to expand itsexpertise as mandated lead arranger in major projects and syndications not only in Qatar but also in theregion with projects such as Qalhat LNG (Oman), Al Nawras (Oman), Emirates Airline (UAE), and DolphinEnergy (UAE).QNB’s spectacular performance continues in 2006 and during the first half of 2006 QNB’s Net Profitincreased by 56.8% to reach QR 1,105 million, compared to QR 705.0 million achieved during the firsthalf of 2005. Total assets increased by 16.2% during the first half of 2006 to reach QR 58.2 billion,compared to QR 50.1 billion as at year-end 2005 (Table 12.1). Loans and Advances increased by 16.0%to reach QR 36.5 billion, while Customer Deposits (including unrestricted investment accounts) grew by25.6% to reach 46.1 billion. Total shareholders’ equity as at June 2006 totalled QR 8.1 billion. QNB’searnings per share reached QR 8.5 during the first half of 2006, compared to QR 5.4 during the first halfof 2005.Table 12.1Qatar National Bank, Summary:(2002 - June 2006)(QR Million) 2002 2003 2004 2005 June 2006Operating Income 986 1,060 1,192 2,189 1,383Operating Expenses 266 281 316 648 278Net Profit 580 641 827 1,537 1,105Total Assets 31,056 34,789 39,547 50,060 58,186Total Shareholders’ Equity 4,981 5,608 6,685 8,709 8,071Share Price (QR) 82.8 126.9 199.7 301.7 215.6Earnings per Share (QR) 5.6 6.2 8.0 14.8 8.5Price/Earnings Multiple 14.8 20.5 25.0 20.4 25.4Source: QNB Annual Reports.QNB’s recognition as the industry leader was further enhanced with an array of awards from leadinginternational publications, namely, ‘Best Emerging Market Bank Award - 2005’ from Global Finance,‘Best Bank in Qatar - 2005’ from Global Finance and The Banker, ‘Best Debt House in Qatar - 2005’from Euromoney, ‘Best Bank in Qatar for Risk Management - 2005’ from Global Finance, and ‘BestTrade Finance Partner - 2005’ from Project Finance.QNB’s strong underlying financial fundamentals and customer-centric increasing range of product andservices were acknowledged by leading international rating agencies as listed in the following page.QATAR NATIONAL BANK 53