Today is an historic day,marking the 50th anniversary of the establishment of The QNB Group. A celebration of 50 years of excellence charting the journey of a leading bank that has established its presence both on the domestic and international stage in line with the rapid economic developments taking place in Qatar.
Through prudent and strategic leadership, QNB has steadily grown to be the largest bank in The Middle East and North Africa Region and is by far the leading financial institution in the country with a market share exceeding 45 perent of banking sector assets.
The commitment to serve a diverse range of retail and corporate customers has been fulfilled by the adoption of the latest international developments in financial services, focusing on upgrading service quality to meet customer expectations and expanding the branch network and electronic channels options available to meet the needs of a growing number of domestic and international customers.
It was very different 50 years ago when QNB was launched with limited capabilities. Senior officials at the Ministry of Finance, headed by HH Sheikh Khalifa bin Hamad Al Thani had a vision to help develop the national economy and establish a strong financial foundation by creating the first national bank in Qatar.
In the Beginning
The QNB Group was established in 1964 as the country’s first Qatari-owned commercial bank. Today, it has an ownership structure split between the Qatar Investment Authority and the private sector.
Starting from a small base of one branch in 1965 in a government owned building (shared with the Post Office) in Doha, QNB started life with just 35 employees. With no indigenous domestic banking structure in existence, everything had to be built from scratch by the pioneers.
The Indian Rupee was in circulation, along with the British Pound, and as the economy and population grew, QNB began to steadily build its branch network in the out-laying regions of Doha and the country. The early pioneers won the respect of local merchants and ordinary customers as they built client confidence in using modern banking services to gain trust. Today, QNB is proud of the long established nature of many of its client relationships spanning almost five decades. By 2014, The QNB Group now operates in 26 countries and across three continents. From India to China, from Yemen to Geneva from Malaysia to Egypt – QNB’s international expansion is underpinned by a prudent, and well executed, strategy.
However, the fundamentals of The QNB Group business today have their roots firmly embedded in the solid foundations of the past. Time has witnessed evolution in people, practices and processes but the guiding principles of QNB can be traced back to the planning and foresight of their founders back in 1964.
Group and strategy
QNB’s strength now, and over the past 50 Years, is its history and heritage of operating in Qatar. There exists a strong track record of building bridges between the past, the present and the future.
As the largest retail bank in Qatar with 76 branches and a network of over 340 ATMs, QNB provides market leading and quality access to products and services related to education, retirement, savings and general financial planning. Through a growing international franchise, they are able to facilitate key financial transactions that generate both positive returns and support important government, business and community objectives.
The continuing goal is to provide insightful banking that balances the needs of today with the aspirations of tomorrow. By continuing to service the needs of a growing and diverse customer base – the stated ambition is to become one of The Top 50 Global banks by 2030.
In the short term, QNB aspires to be a MEA Icon by 2017 and will seek to secure this achievement by leveraging its capital, people and networks to deliver strong and sustainable financial performance.
Today, as one of the 50 safest banks in the world (according to Global Finance Magazine in 2013), QNB continues to provide financial and strategic advice that enables Qatar to prosper, maximize its potential and embrace new opportunities.
Building a Sustainable Future
Being both financially profitable and sustainable were founding principles of QNB in 1964. QNB continues to execute on this strategy and what remains unchanged is the drive to continue to provide robust and impressive financial performance that is capable of generating sustained growth in the long term.
Back in 1965, The bank posted a net profit of QR1.8m and the shareholders equity was QR17.6m. By 1994, the total assets under management stood at QR15,824m and net profits had risen to QR275.2m.
For the first three months of 2014, The Group recorded net profit of QR2.4bn up by 13.7 percent on the comparable period for 2013. Total assets increased by 20.6 percent in the same period to reach QR458bn, the highest ever achieved in the Group’s history.
The last five years, in particular, have witnessed an explosive growth in assets, loans, operating income and profits which have expanded at compound annual growth rates of 23 percent, 29 percent, 25 percent and 21 percent respectively.
This consistent expansion has dovetailed with the rapid growth of the Qatar economy. Over a large part of QNB’s history, the focus has been on the considerable expansion of the LNG production facilities but the next stage of evolution in Qatar’s journey will centre upon the non-oil sector. For example, the share of bank lending to the services sector now accounts for almost 16 percent of Corporate Lending.
QNB Group is amongst the highest rated regional banks from leading international credit ratings agencies including Standard & Poor’s (A plus), Moody’s (Aa3), Fitch (A plus) and Capital Intelligence (AA-).
Bloomberg Markets ranked QNB as “The World’s Strongest Bank” in 2012. Significantly, QNB was the only bank from The MENA Region included on the list. QNB has also just recently secured the prestigious “Best Bank in The Middle East” Award from Euromoney Magazine.
The Bank is currently ranked as the most valuable brand ($1.81bn) in The MENA region according to The Brand Finance Global Survey with a current world ranking of 101st in 2013.
Innovation
Since 1964, QNB has sought to be there to support the evolving needs of its growing base of customers and clients.
From the opening of the first branches outside of Doha in 1974 at Al Khor and Mesaieed, QNB has been instrumental in driving change and bringing innovation and progress to the financial lives of people.
Up until 1988, all financial data was processed manually. In 1989 the bank introduced the KAPITI Online Banking System that linked the network to a mainframe system. By 1992, QNB had introduced the first automated treasury dealing systems to allow new products and services to be shared by both domestic and international operations. First “computerisation” programme was installed by QNB in their London Office in 1984 and by 1988 the first Automated Teller Machines (ATMs) had appeared in QNB branches in Doha.
In 1989, QNB introduced VISA cards for customers and by 1994, the Bank had issued more than 50 percent of the “Premier” and “Classic” cards issued by all the banks operating in Qatar at that time.
Throughout the 1990’s and keeping apace with best international banking practices, QNB introduced sophisticated technologies to allow Treasury functions to offer Bonds, Securities trading, Swaps, Options and Margin Trading to clients.
QNB also was the first Bank to launch a Vehicle Finance Division in 1994. Using International best practice, the bank was the first to introduce a stand-alone legal department in 1985 and this was followed by the introductions of specialised Audit and Financial Controls functions
For the period 1994-2004, QNB led the way in banking practices by introducing the first Voice Banking, Home Banking, Personal Housing Loans and Point of Sale cards technology. Innovations included the launch of Internet Banking and 24 Hour Call Centres in 1999, the first fully automated e-Branch in Qatar in 2001, and the introduction of SMS alerts and Electronic Statements in 2004.
Recent customer and technical innovations have included the introduction of QNB Life Rewards as a loyalty vehicle to both earn and redeem points against banking transactions, exclusive partner outlets and household bills, QNB becoming the first bank in the MENA Region to partner with PayPal to enhance customer convenience via Internet e-payments facilities and QNB launching the first ever “Self-Service Payment Kiosk” in Qatar with chip and pin facilities allowing customers 24/7 access to conduct their financial business.
Supporting the 2030 National Vision
Throughout the last 50 Years, QNB has supported national infrastructure development through its robust financial performance.
Since QNB participated in securing important financing for the construction of Doha International Airport back in 1965, the bank has financed numerous projects across all economic sectors during the past five decades.
The national economy has come a long way since 1964. That year, the Qatar National Company for Cement was established. Oil Production was 100,000 barrels a day and by 1975, the State Budget has grown to QR8.2bn. QNB was one of the first local banks to contribute to, and support, Qatar Petroleum in these mega project deals. It has also contributed to the developments in Qatar including the landmark investment in Qatar LNG project. In addition, they have also participated in the extensive programme of factories being built across Qatar and all of the expansion projects involving Qatar Airways and Qatar Telecommunication Company.
This commitment to investing in Qatar’s future continues today with significant finance and resources being deployed in major projects such asthe QNB Group led syndicate of Banks being mandated for the newDoha Metro Project – Red Line South package and QNB coordinating and arranging project finance for Qatar Electricity & Water Company Ras Abu Fontas A2 Water Desalination Project.
The bwas established with one main mission – to support and enable the private sector to successfully contribute to the growth of Qatar. This core objective remains today and is both complemented by, and derives further strength from, Qatar’s growing international presence by expanding and diversifying its strong and resilient business model.
People and the community
At the heart of QNB’s success over the last 50 years has been its people. Since the inception, QNB has been fully committed to the attraction, development and retention of quality employees.
Starting with just 35 employees in 1964, the Bank grew to almost 500 domestic and international staff by 1994. Today, the total number of staff is around 14,000 operating from 590 locations. Approximately 2,000 employees operate from Qatar.
In recent years, the international “mix” of people working under the QNB Brand has grown with the acquisition of a 97.12 percent controlling stake of the second largest private bank in Egypt (QNB Alahli previously known as NSGB), a 35 percent stake in the Jordan based The Housing Bank for Trade and Finance, a 40 percent stake in Commercial Bank International based in The United Arab Emirates, a 99.6 percent stake in QNB Tunisia, a 51 percent stake in the Iraqi based Mansour Bank, a 49 percent stake in Libya based Bank of Commerce & Development, a 20 percent stake in Al Jazeera Finance Company in Qatar, a 51 percent stake in QNB Syria and a 70 percent stake in QNB Kesawan in Indonesia.
The Group has opened a representative office in China and established a fully owned subsidiary in India under the name of “QNB India Private Limited”.
QNB has a Qatarisation rate in excess of 50 percent, the highest rate within Financial Services. In addition, over 70 percent of senior management positions are held by Qatar Nationals and this figure will increase in the coming years.
QNB also takes its Social Responsibility duties seriously and firmly believes that CSR should live at the heart of the business.
From the opening of The Qatar Museum of Arts in 1978, to support of local charities and education establishments in the 1990’s to high profile sponsorships of Paris St Germain Football Club in France – QNB has endeavoured to put something back into the communities that it operates from.
The CSR Strategy is shaped and implemented to achieve measurable impact and focuses on six main areas of activities; Culture and Arts, Economic and International Affairs, Health and The Environment, Social and Humanitarian Affairs, Sports, Education and Youth.
A glorious past and a promising Future.
From humble beginnings in 1964, QNB has grown to become the largest Bank in Qatar and an International Financial Institution operating across 26 countries and three continents. It enjoys domestic and international confidence and has sustained an enviable track record in terms of profitability, capitalization and a return on shareholders’ equity. Throughout its 50 Years of existence, QNB has continued to shoulder national responsibility and participate in the development of Qatar. It has not stood still in the face of technological, regulatory or Qatarisation challenges. It remains as committed today to supporting, servicing and providing all sectors of Qatar’s economy with the latest banking offerings as it was back in 1964.
Fifty years ago, a fledgling company comprising 35 employees was born. Today, it is an innovative international financial institution with over one million social media followers in Qatar and overseas and is at the forefront of supporting the Government’s infrastructure projects programme aligned to the Qatar 2030 National Vision.
The Peninula
