DOHA: International expansion is key for QNB Group’s future plans. The Group’s expansion plans for the next three years will refocus on global expansions while maintaining its dominant position in Qatar.
By 2017, the bank expects a 60 percent of its net profit contributions and 55 percent net assets contributions from its international operations, thus positioning QNB as a transaction banking leader in the Mena.
Replying to queries raised by QNB shareholders at the Group’s ordinary general assembly here yesterday, the Chairman H E Ali Sherif Al Emadi said the Group’s subsidiary in Egypt, QNB Al Ahli, delivered strong numbers in 2013 despite ‘unfavourable’ political conditions prevailing in that country. “We are very much optimistic about our businesses outside”, he said.
“With the acquisition of QNB Al Ahli, Egypt’s second largest private bank, and the entry into Asia’s leading markets, China and India, QNB Group’s global footprint has increased to 26 countries with over 13,600 employees operating from 590 locations…”
Driven by the dual considerations of on-going domestic and international expansion along with the continuing adoption of a prudent approach to risk management, QNB had established its position as the World’s Strongest Bank and re-affirmed its status as the leading financial institution in the Mena region, he said.
In parallel to its international expansion, QNB Group continued to actively support Qatar’s National Vision 2030, particularly in the area of human capital development. Through the Group’s numerous recruitment initiatives, 150 Qataris were successfully hired, a comprehensive Trainee Development Programme was launched and the Qatarisation ratio exceeded 50 percent, with strong representation at all levels, including in senior leadership positions.
QNB Group’s success in maintaining momentum across all its activities was reflected in the strong 2013 financial results. There has been an increase of 13.7 percent in Net Profit to QR9.5bn, the highest ever achieved, with total assets up by 20.9 percent, to QR443bn. These results reflect the sustained progress in the performance of the Group and its ability to meet shareholders’ expectations.
Giving an overview of the bank’s business plans for 2014, the chairman noted retaining the bank’s leading position through diversifying income sources and expanding the range of activities across the QNB Group was of primary focus. The ability to meet shareholders’ expectations remained a core consideration for 2014.
The general assembly ratified all remaining items on its agenda including the proposal by the Board of Directors to distribute a cash dividend of 70 percent of the nominal share value, representing QR7.0 per share to the shareholders. The meeting also approved the appointment of Ernst & Young as External Auditors for the year 2014.
During 2013, the Bank continued to diversify its funding sources with great success. A number of public issues and private placements were completed during the year, said Ali Ahmed Al Kuwari, Acting Group Chief Executive Officer.
In line with its international expansion strategy, QNB group successfully completed in Q12013 the acquisition of a 97.12 percent stake in NSGB, which has been re-branded as QNB Al Ahli.
The Group also extended its regional presence by increasing its stake in QNB-Tunisia to 99.96 percent. In 2013, QNB Group established its footprint in Asia’s leading markets too.