QNB Head Office. P.O. Box 1000, Doha, State of Qatar Tel. (+974) , Fax (+974)

Transcription

1 Banking Sector Review Results & Performance 2007

2 QNB Head Office P.O. Box 1000, Doha, State of Qatar Tel. (+974) , Fax (+974) Banking Sector Review

3 Contents Qatar National Bank Together Forward 2 Highlights of QNB s 2007 Year-End Results 3 Year 2007 Achievements 4 Qatari Banking Sector Highlights of 2007 Results: Balance Sheet 5 Highlights of 2007 Results: Shareholders Equity 6 Highlights of 2007 Results: Profitability 6 Comparative Statistics ( ) Assets 7 Loans and Advances & Financing Activities 8 Customers Deposits and Unrestricted Investment Accounts 9 Total Shareholders Equity 10 Net Profit 11 Doha Securities Market Market Capitalisation 12 DSM Index 12 Banking Sector Review 1

4 QNB: Together Forward During 2007, QNB has not only achieved an outstanding financial performance, but also layed a strong foundation for achieving continued growth in the coming years, through a strategic international expansion programme. QNB established branches in Kuwait, Oman and Yemen, along with representative offices in Libya and Singapore. Additionally, QNB acquired a 30.5% stake in Jordan s second largest bank, The Housing Bank for Trade and Finance. Further, QNB reached an agreement for the establishment of a new private bank in Syria in which it will hold a 49% stake. In 2007, special mention also needs to be accorded to the performance and reach of QNB s Islamic banking division QNB Al Islami. QNB Al Islami has become a leading and preferred provider of Islamic banking services and products to institutions, corporations, and retail customers. QNB has the largest retail banking network in Qatar, consisting of 52 branches and offices and 132 ATMs located at strategic and convenient points across the country. Five-Year Performance Summary - Net profit increased by 291.1% from QR641.1 million in 2003 to QR2,507.5 million in Return on Average Equity increased from 12.1% in 2003 to 22.5% in Earnings per share increased from QR5.2 in 2003 to QR14.5 in Share price increased from QR126.9 in 2003 to QR217.3 in Market Capitalisation increased from QR13.1 billion in 2003 to QR39.7 billion in Total Assets 310,000 (9.0%) 290, , , ,000 (51.7%) 230, , % (39.3%) 190, , , Banking Sector Review 2

5 Highlights of QNB s 2007 Year-End Results Net profit increased by 25.5% to QR2,507.5 million ($689.0 million) from QR1,998 million in Other operating income increased by QR662 million (51.3%) to QR1,955 million. Total assets grew by QR42.7 billion (59.6%) to QR114.4 billion. Deposits and unrestricted investment accounts increased by QR23.6 billion (42.3%) to QR79.4 billion. Loans and Financing Activities increased by QR19.8 billion (42.9%) to QR66.1 billion. Shareholders funds totaled QR13.8 billion ($3.80 billion). Return on Average Equity was at 22.5% in Capital Adequacy Ratio of 16.2% compared to Qatar Central Bank & Basle stipulations of 10% and 8%, respectively. Earnings per share increased from QR11.7 in 2006 to QR14.5 in Improved efficiency ratio (costs to income) of 25.9% in 2007, compared to 28.9% in Net Profit (6.5%) 9,000 8, , % 7,000 (65.2%) (28.3%) 6,000 5, ,000 4, Banking Sector Review 3

6 Year 2007 Achievements Ratings QNB continues to be the highest rated bank in Qatar and is currently rated by Capital Intelligence, Standard and Poor s, Fitch and Moody s. Capital Intelligence was the most recent to raise QNB s ratings, and in June 2008 raised the long-term and short term foreign ratings to AA- and A1+, from A+ and A1 respectively. In May 2007, Standard and Poor s raised QNB s long-term ratings to A+ from A. In November 2006, Fitch upgraded QNB s long-term and short-term foreign currency ratings to A+ and F1, from, A and F2 respectively. In October 2006, Moody s upgraded QNB s long-term and short-term ratings to Aa3 and P-1, from A1 and P-2 respectively. QNB s ratings are shown in the table below. Agency Long-Term Short-Term Financial Strength/ Individual Moody s Aa3 P-1 C- Standard and Poor s A+ A-1 - Capital Intelligence AA- A1+ A+ Fitch A+ F1 B/C QNB Diamond Sponsor of Qatar Economic Forum Under the patronage of H.H. the Emir Sheikh Hamad Bin Khalifa Al-Thani, QNB was the Diamond Sponsor of the Second Qatar Economic Forum. The Forum brought together high-profile participants from Qatar and abroad providing an excellent platform for business development and investment opportunities in various sectors and viewing Qatar s economic future which is witnessing remarkable growth. Customer Deposits and Unrestricted Investment Accounts 190, ,704 (9.5%) 180, , % 160, ,000 (47.8%) (42.7%) 140, , , , Banking Sector Review 4

7 Qatari Banking Sector: Highlights of 2007 Results Balance Sheet Total Assets Banking Sector: increased by QR104.3 billion (55.9%) to QR290.7 billion. Qatari Banks: increased by QR96.5 billion (57.5%) to QR264.5 billion. Foreign Banks: increased by QR7.7 billion (41.9%) to QR26.2 billion. Loans and Advances & Financing Activities Banking Sector: increased by QR56.2 billion (52.4%) to QR163.4 billion. Qatari Banks: increased by QR52.3 billion (53.2%) to QR150.6 billion. Foreign Banks: increased by QR3.9 billion (44.2%) to QR12.8billion. Customer Deposits & Unrestricted Investment Accounts Banking Sector: increased by QR55.6 billion (42.7%) to QR185.7 billion. Qatari Banks: increased by QR52.4 billion (45.3%) to QR168.0 billion. Foreign Banks: increased by QR3.2 billion (22.2%) to QR17.7 billion. Loans and Advances & Financing Activities 170, , ,435 (7.9%) 150, , % (51.7%) 130, ,000 (40.4%) 110, , , Banking Sector Review 5

8 Qatari Banking Sector: Highlights of 2007 Results Shareholders Equity Banking Sector: up by QR16.5 billion (52.1%) to QR48.2 billion. Qatari Banks: up by QR16.0 billion (54.4%) to QR45.5 billion. Foreign Banks: up by QR451 million (20.8%) to QR2.6 billion. Shareholders equity to assets ratio for the sector as a whole stood at 16.6%, with the ratio of Qatari banks at 17.2% and that for foreign banks at 10.0%. Profitability Banking Sector: up by QR2,904.9 million (48.9%) to QR8,848.6 million. Qatari Banks: up by QR2,797.4 million (51.1%) to QR8,270.9 million. Foreign Banks: up by QR107.5 million (22.9%) to QR577.7 million. Return on Average Assets for the sector stood at 3.71% in 2007, compared to 3.78% in Return on Average Equity for the sector stood at 22.2% in 2007, compared to 21.5% in Total Shareholders Equity 50,000 48,160 46, % (5.4%) 42,000 38,000 (65.8%) (28.8%) 34,000 31,672 30,000 26, Banking Sector Review 6

9 Comparative Statistics ( ) Assets (QR Million) QNB 34,789 39,548 50,060 71, ,361 Doha Bank 9,057 10,993 15,230 21,696 30,088 Commercialbank 8,785 12,940 22,182 30,358 45,397 Qatar Islamic Bank 5,598 7,742 9,552 14,889 21,336 ahlibank 2,545 4,286 6,181 9,556 15,576 International Islamic 3,907 4,998 6,336 8,398 9,951 International Bank of Qatar 1,335 2,009 4,660 6,698 10,771 Masraf Al Rayyan ,324 10,191 al khaliji ,151 Qatar Development Bank ,692 HSBC 2,683 3,078 5,004 6,982 10,284 Arab Bank 1,821 2,130 2,817 3,895 4,347 BNP Paribas 947 1,650 1,920 2,358 2,668 Standard Chartered 1,027 1,392 1,444 2,287 4,980 Mashreqbank 888 1,264 1,878 2,006 2,615 United Bank Limited Bank Saderat Iran Total Sector 74,218 92, , , ,708 Qatari Banks 66,373 82, , , ,515 Foreign Banks 7,845 10,090 13,738 18,458 26,193 Source: Banks Annual Reports and published information. Banking Sector Review 7

10 Comparative Statistics Loans and Advances & Financing Activities (QR Million) QNB 23,141 26,591 31,478 46,227 66,064 Doha Bank 4,827 5,437 8,295 13,630 19,170 Commercialbank 4,655 6,714 10,884 17,360 25,021 Qatar Islamic Bank 3,301 4,263 5,973 7,156 11,679 ahlibank 1,256 1,445 3,490 6,294 10,106 International Islamic 2,051 2,621 3,397 3,620 4,389 International Bank of Qatar 698 1,009 2,246 3,754 6,517 Masraf Al Rayyan ,738 al khaliji Qatar Development Bank HSBC 1,482 1,614 2,281 3,111 5,325 Arab Bank 802 1,087 1,756 2,329 2,537 BNP Paribas ,103 Standard Chartered ,154 1,187 Mashreqbank ,843 United Bank Limited Bank Saderat Iran Total Sector 43,962 53,117 72, , ,435 Qatari Banks 39,983 48,144 65,850 98, ,593 Foreign Banks 3,979 4,973 6,896 8,904 12,842 Source: Banks Annual Reports and published information. Banking Sector Review 8

11 Comparative Statistics Customers Deposits and Unrestricted Investment Accounts (QR Million) QNB 24,100 29,614 36,706 55,767 79,364 Doha Bank 7,427 8,068 11,024 15,190 20,043 Commercialbank 6,272 8,304 13,235 17,209 25,796 Qatar Islamic Bank 4,763 5,817 6,866 8,786 12,201 ahlibank 1,796 2,744 4,530 6,827 11,494 International Islamic 3,465 4,360 5,077 6,696 7,218 International Bank of Qatar 1,130 1,509 3,586 4,912 6,952 Masraf Al Rayyan ,943 HSBC 2,051 2,387 3,925 5,517 7,508 Arab Bank 1,638 1,700 2,301 3,275 3,695 BNP Paribas 771 1,114 1,318 1,788 1,779 Standard Chartered 830 1,039 1,127 1,863 1,918 Mashreqbank ,417 1,303 1,772 United Bank Limited Bank Saderat Iran Total Sector 55,262 67,970 91, , ,704 Qatari Banks 48,953 60,415 81, , ,012 Foreign Banks 6,308 7,555 10,599 14,480 17,692 Source: Banks Annual Reports and published information. Banking Sector Review 9

12 Comparative Statistics Total Shareholders Equity (QR Million) QNB 5,608 6,685 8,709 8,457 13,858 Doha Bank 1,120 1,594 2,401 2,768 3,619 Commercialbank 1,411 2,620 5,677 5,631 6,228 Qatar Islamic Bank 542 1,497 2,096 4,245 4,629 ahlibank ,075 1,182 1,524 International Islamic ,425 2,356 International Bank of Qatar ,367 1,928 Masraf Al Rayyan ,079 5,159 al khaliji ,561 Qatar Development Bank ,679 HSBC Arab Bank BNP Paribas Standard Chartered Mashreqbank United Bank Limited Bank Saderat Iran Total Sector 10,674 15,676 23,662 31,672 48,160 Qatari Banks 9,799 14,459 22,117 29,504 45,541 Foreign Banks 875 1,218 1,545 2,168 2,619 Source: Banks Annual Reports and published information. Banking Sector Review 10

13 Comparative Statistics Net Profit (QR Million) QNB , , ,507.5 Doha Bank Commercialbank ,390.7 Qatar Islamic Bank , ,255.4 ahlibank International Islamic International Bank of Qatar Masraf Al Rayyan ,079.6 al khaliji Qatar Development Bank HSBC Arab Bank BNP Paribas Standard Chartered Mashreqbank United Bank Limited Bank Saderat Iran Total Sector 1, , , , ,848.6 Qatari Banks 1, , , , ,270.9 Foreign Banks Note: Foreign Banks Net Profit on after tax basis. Source: Banks Annual Reports and published information. Banking Sector Review 11

14 Doha Securities Market Market Capitalisation As at May 29, 2008 (35.4%) (37.8%) (2.9%) (23.9%) 210, , , , , ,452 60,000 10,000 14,380 DSM Index May 29, 2008 DSM Index 3, , , , , , % Change during year 69.83% 64.53% 70.21% % 34.30% 24.05% Banking Sector Review 12

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16 QNB Group Ansbacher United Kingdom Two London Bridge London - UK Tel: (+44) , Fax: (+44) United Kingdom 51 Grosvenor Street, London W1K 3HH Tel: (+44) , Fax: (+44) QNBLondon@qnb.com.qa France 58 Avenue d lena Paris Tel: (+33) , Fax: (+33) QNBParis@qnb.com.qa Tunisia Tunis Qatari Bank Siege Social: Rue Cite des Sciences B.P Tunis Cedex Tel : , Fax: Singapore One Temasek Avenue Millenia Tower #22-03 P.O. Box: 1232 Tel: (+65) , Fax: (+65) QNBSingapore@qnb.com.qa Qatar Al Jazeera Islamic Company Associate Company P.O. Box: Doha - Qatar Tel: (+974) , Fax: (+974) Libya Burj Al Fatah 19th Floor P.O. Box: Tripoli - Libya Tel: (+218) / 2, Fax: (+218) QNBLibya@qnb.com.qa Iran 6th floor Navak Building Unit 14 Africa Tehran - Iran Tel: (+9821) , Fax: (+9821) QNBIran@qnb.com.qa Oman Qatar National Bank Building MBD Area - Matarah / opposite to Central Bank of Oman P.O. Box: 4050 Postal Code: 112, Ruwi Tel: (+968) , Fax: (+968) QNBOman@qnb.com.qa. Kuwait Al Raya Centre / 28th Floor Al Shohada Street East Kuwait P.O. Box: Postal Code: Dasman Tel: (+965) QNBKuwait@qnb.com.qa Yemen Qatar National Bank Building Al-Zubairi Street Sana a - Yemen P.O. Box: 4310 Tel: (+967) , Fax: (+967) QNByemen@qnb.com.qa Jordan The Housing Bank for Trade and Finance Associate Company P.O. Box: 7693 Postal Code Amman - Jordan Tel: (+962) , Fax: (+962) Iraq Mansour Bank Associate Company P.O. Box: 3162 Al Wihda District Al Alawiya Post Office Baghdad - Iraq Tel: (+964) , Fax: (+964) Banking Sector Review 16