DOHA: QNB Group’s ongoing global expansion plans are part of the bank’s risk aversion strategy. The Group is expecting a 40 percent of its net profit for the year 2016 from its foreign operations, H E Ali Shareef Al Emadi, the chairman of QNB Group said yesterday.
“Qatari market is of course important for us. But geographical expansions are bringing us better returns,” he said, while addressing the Ordinary General Assembly meeting.
Al Emadi, who is also the Minister of Finance, said the acquisition process of Finsbank AS will be completed in six months. QNB group expects to finalise the transaction during the first half of 2016, he said.
Finsbank is the fifth largest privately owned universal bank by total assets, customer deposits and loans in the Turkish market
The macroeconomic fundamentals of Qatar is one of the strongest in the region, despite lower oil prices, driven by non-hydrocarbon sector growth. This has continued apace, as the government has reaffirmed its commitment to its infrastructure investment programme, moving towards the goals of Qatar’s National Vision 2030.
Al Emadi said the banking sector in Qatar continues to record strong growth, with QNB successfully leveraging its position as the leading financial institution in the country. The banking system will continue to grow stronger going forward.
QNB Group’s growth has been strategic, focused and targeted on the Middle East, Sub-Saharan Africa and Southeast Asia regions with the most promising growth outlook within the global economy. This year has seen the best performance in the Group’s history. “We have developed QNB as an incubating centre to support local community and support the local market and individuals”.
The chairman said that QNB Group’s success in maintaining momentum across all its activities was reflected in the strong 2015 financial results. 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 re-affirmed its status as the leading financial institution in the Middle East and Africa Region.
On the bank’s business plans for the year 2016, Al Emadi said retaining QNB’s position through diversifying income sources and expanding the range of activities across the QNB Group would be the primary focus. The ability to meet shareholders’ expectations remained a core consideration for 2016.
“The strong and robust nature of QNB Group’s performance in 2015 was reflected in the delivery of record financial results. Net profit rose to QR11.3bn, up by 8 percent compared to 2014 and total assets increased by 11 percent from December 2014 to QR539bn,” he said.
The general assembly ratified all remaining items on its agenda of both the ordinary and extra ordinary general assemblies, including the proposal by the board of directors to distribute cash dividend of 35 percent of the nominal share value (QR3.5 per share) and a bonus shares of 20 percent of the share capital—two shares for every ten shares.
The meeting approved EY as external auditors of the year 2016.
