QNB to open branch in Saudi Arabia this year

QNB, the largest financial institution in the Middle East and Africa region, is set to start its operations in Saudi Arabia by opening a branch this year. Minister of Finance and the Chairman of QNB Group’s Board of Directors H E Ali Sherif Al Emadi, speaking at the Bank’s Ordinary and Extraordinary General Assembly Meeting held yesterday, said QNB will continue to expand its global footprint. The bank will upgrade its offices to branches in India and China.

The General Assembly ratified all items on its agenda of both the Ordinary and Extraordinary General Assemblies, including the proposal by the Board of Directors to distribute a cash dividend of 35 percent of the nominal share value (QR3.5 per share) and a bonus share of 10 percent of the share capital (one share for every 10 shares).

The Chairman also announced the Group’s new vision to become a leading bank in the Middle East, Africa, and South East Asia by 2020, and vowed the Group’s unprecedented will and determination to achieve it.

“The Middle East, Africa and Southeast Asia (MEASEA) markets will continue to see strongest growth rates globally. These regions require further trade and investment flows as they build the foundations for socio-economic development. By strategically positioning our business across these markets, we are securing our vision to become one of the leading banks in MEASEA by 2020,” said Al Emadi. “This will positively contribute to QNB’s growth and add additional strength to the Group by diversifying our sources of revenue and profit,” he added.

The Chairman shed light on the Group’s achievements during the year, highlighting its acquisition of a 99.88 percent stake in Turkey’s Finansbank, (now rebranded as QNB Finansbank) which is the fifth largest privately owned bank in Turkey in terms of total assets, net loans and total customer deposits.

He explained that the Group has achieved its vision of becoming a Middle East and Africa Icon by 2017 ahead of time, reflecting the Group’s strong capabilities and sound planning, thanks to the excellent efforts of QNB team.

“While QNB strategically expands its geographic presence and product offering, we are ensuring that these are executed efficiently and effectively.

We are investing in frontline staff, in new products and in infrastructure to capture the opportunities in our network,” said the Chairman. “The Group’s increasing geographic diversification positively contributes to lowering the inherent risk and volatility of our business; in 2016, international growth contributed 37 percent to net profit, having grown from 31 percent in 2015,” he added.

The Chairman said retaining its leading position through diversifying income sources and expanding the range of activities across the QNB Group were of primary focus. The ability to meet shareholders’ expectations remained a core consideration for this year.

The strong and robust nature of QNB Group’s performance in 2016 was reflected in the delivery of record financial results, said the Chairman. Net profit reached QR12.4bn, up by 10 percent compared to 2015, and total assets increased by 34 percent to reach QR720bn.