October2012

Inside This Issue
1
Financial Results for the 9 Months Ended
30 September 2012
2
Subsidiaries & Associates of QNB Group
2
QNB Market Share
3Performance
4
QNB Share Price
5
Qatar Exchange Trading Activities
6
Net Profit as at 30 June 2012 for
Qatar Exchange Listed Companies
7
Top Five MENA Companies
7
Top Ten Ranking Qatari Companies
8
Qatar Exchange Main Financial Indicators
9
GCC Stock Markets and Global Financial
Markets
10
Al Watani Fund 1 Performance
11
Al Watani Fund 2 Performance
12
Business Update
13
Corporate Update
14Community
QNB Investor is a publication of QNB.
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without permission.
authors which does not coincide
For your comments:
Abdulla Al Sada
Economics, Financial Analysis & Research
Tel. : (+974) 4453 4641
E-mail: [email protected]
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QNB INVESTOR
GCEO’s Message
Dear Investors,
QNB Group has continued its deep commitment to implement
ambitious expansion and growth plans throughout all its operations
to further maintain its leading position in the financial sector in the
Middle East and North Africa region.
Financial results for the nine months ended 30 September 2012,
demonstrated this commitment with a record net profit of QR6.2
billion, up by 15.0% compared to the same period last year.
The Group also recorded strong growth in other indicators with
total assets increasing by 25.3% since 30 September 2011 to reach
QR351.0 billion, the highest ever achieved. The loan book increased
by 41.9% to reach QR238.6 billion, while customer deposits recorded
solid growth of 37.4% to QR268.5 billion.
Shareholders’ equity increased by 13.1% since 30 September
2011 to reach QR46.2 billion as QNB Group maintained a strong
capitalisation in order to support future strategic plans.
These results demonstrate QNB›s success in implementing its fiveyear strategic plan aiming at expanding its operations to become an
icon in the Middle East and Africa. These results also encourage us
to exert more efforts to achieve further expansions and open new
markets to realise QNB Group’s goals and targets.
Ali Shareef Al-Emadi
Group Chief Executive Officer
Financial Results for the Nine Months Ended 30 September 2012
QNB Group Financial Highlights
• Net Profit up by 15.0% to QR6.2 billion
• Total Assets up by QR70.9 billion (25.3%) since September 2011 to QR351.0 billion
• Total Loans and advances up by QR70.4 billion (41.9%) since September 2011 to QR238.6 billion
• Total Customer Deposits up by QR73.1 billion (37.4%) since September 2011 to QR268.5 billion
• Earnings per share increased to QR8.9 compared to QR8.3 in September 2011
• Total Equity up by QR5.4 billion (13.1%) since September 2011 to QR46.2 billion
6.5
5.2
9.00
6.75
3.9
4.50
2.6
1.3
2.25
0.0
0.00
400
250
320
200
240
150
160
100
80
50
0
0
QNB Group Key Performance Indicators
September
2012
September
2011
Net Profit
QR6.2 billion
QR5.4 billion
Total Assets
QR351 billion
QR280 billion 25.3%
Loans and Advances
QR239 billion
QR168 billion 41.9%
Customer Deposits
QR268 billion
QR195 billion 37.4%
Total Equity
QR46 billion
QR41 billion
Earnings per Share
QR8.9
QR8.3
300
225
150
75
0
Growth
15.0%
13.1%
1
QNB INVESTOR
Subsidiaries & Associates of QNB Group
QNB Group
Country
% Ownership
QNB Capital
Qatar
100%
Switzerland
100%
Qatar
100%
Indonesia
70%
QNB Syria
Syria
51%
Mansour Bank
Iraq
51%
Tunisia
50%
Bank of Commerce & Development
Libya
49%
Commercial Bank International
UAE
40%
Housing Bank for Trade & Finance
Jordan
35%
Al Jazeera Finance Company
Qatar
20%
QNB Switzerland
QNB Financial Services
QNB Kesawan
Tunisian Qatari Bank
QNB Market Share
QNB market share as at June 2012
Net Profit
Loans and Advances
43.7%
49.4%
50.6%
56.3%
Assets
Customers’ Deposits
51.0%
44.7%
49.0%
Source: QE and Published Financial Statements.
2
55.3%
QNB Group
Other Qatari Banks
Performance
First Qatari Bank Established in Qatar
•
Stable Shareholders’ Structure
since inception, with a 50% stake owned
by the Qatar Investment Authority
•
Sustained Growth in Profitability
with diversified income sources
•
Best Bank in Qatar Award
from The Banker, Euromoney, emeafinance,
Global Finance & Asian Banker
•
•
First Qatari Bank to launch Local Equity Funds
•
Largest Financial Institution in the
MENA region with Total Assets of
QR351 billion in September 2012
•
Largest International Network
covering 24 countries in the MENA
region, Europe, and Asia
Capital Adequacy Ratio
• Strong
of 19.3% in September 2012
compared with 8% for Basel II
and 10% for Qatar Central Bank
Comprehensive Banking Activities
Retail, Corporate, Treasury, Asset & Wealth
Management, Brokerage, Financial Advisory &
Custody
Asset Quality with a NPL
• High
ratio of 1.2% with a coverage
ratio of 116%.
Among the Highest Rated Banks in the Region
Fitch
Capital Intelligence
Standard & Poor’s
Moody’s
A+
AA-
A+
Aa3
QNB’s Key Achievements During the First Nine Months of 2012
• QNB established a dedicated Mortgage Loan Centre
providing comprehensive mortgage products and services.
• QNB launched the first Mobile Near Field Communication
(NFC) Payments Program in Qatar in collaboration with
to the latest update published by Global Finance
in April 2012.
• QNB increased its stake in the UAE-based Commercial
Bank International to 40%
Qtel, Obethur and MasterCard.
• QNB successfully closed a syndicated facility amounting
• QNB Group was ranked as the most valuable brand in the
to US$1.8 billion
MENA region, with a world ranking of 114 from 189 in
2011 by Global Finance.
• QNB Group was appointed as official dividend distribution
agent for various listed companies including Industries
• QNB launched depository services in Qatar Exchange
• The bank increased its stake in Mansour Bank in
Iraq to 51%
Qatar, Al Meera, Nakilat, Qtel, Barwa and GIS.
• QNB acquired a 49% stake in Bank of Commerce &
• QNB Group was named one of the World’s 50 Safest Banks
and one of the Safest Banks in the Middle East, according
Development
in Libya
3
QNB INVESTOR
QNB Share Price
QNB Group Share Price
16,000
140
14,000
138
12,000
136
10,000
134
8,000
132
6,000
130
4,000
128
2,000
126
0
124
9/30/11
12/30/11
3/30/12
31/06/2012
9/30/12
Note: Starting from April 2012, a new banking sector index was introduced by Qatar Exchange.
NoSource: QNB Group and QE.
In the Third Quarter of 2012, QNB Share Price increased by 3.1% while the Qatar Exchange Index increased by 4.8% and
the Banking Index increased by 3.7% in the Third Quarter of 2012. QNB’s Earning Per Share (EPS) increased to QR8.9 in the
Third Quarter of 2012, which is the highest in the Banking Sector.
QNB Group Share Price Movements Vs QE Index
900
140
138
880
136
860
134
840
132
820
130
128
800
126
780
124
760
122
Source: QNB Group and QE.
4
Qatar Exchange Trading Activities
Value of Shares Traded by Sector
15,000
12,500
10,000
7,500
5,000
2,500
0
Banking & Consumer Goods
Financial Services & Services
Industrials
Insurance
Real Estate
Telecom
Transport
Source: QNB Group and QE.
Trading Activities
QNB Group
Trading Data
No. of Shares Traded
Qatar Exchange
Q2 2012
Q3 2012
6,156,634
6,024,940
Trading Data
No. of Shares Traded
Value of Shares Traded
(QR Million)
823.2
806.2
Value of Shares Traded
(QR Million)
No. of Contracts
7,444
6,841
No. of Contracts Executed
Q2 2012
Q3 2012
94,533
95,023
699,729,438
699,729,438
Market Capitalisation
(QR Million)
No. of Subscribed Shares
Market Capitalisation
(QR Million)
Index
Q2 2012
Q3 2012
749,843,459
943,575,023
19,397
23,854
303,549
192,573
Q2 2012
Q3 2012
446,101
468,216
8,123.0
8,510.2
Source: QNB Group and QE.
• The number of QNB Shares traded during the Third
Quarter of 2012 declined to 6.0 million Shares compared
to 6.1 million Shares during the Second Quarter of 2012.
• The QE Index increased by 4.8% to reach 8,510.2 points
during the Third Quarter of 2012 compared to 8,123.0
points in the Second Quarter of 2012.
• The value of QNB Shares traded declined by 2.1% to
reach 806 million in the Third Quarter of 2012.
• QE Market Capitalisation increased by 5.0% during
the Third Quarter of 2012, to reach QR 468.2 billion
compared to QR 446.1 billion in Second Quarter 2012.
• During the Third Quarter of 2012 the number of QNB
contracts declined by 8.1% compared to decline by
36.6% in the QE contracts.
Source: QNB Group and QE.
5
QNB INVESTOR
Net Profit as of June 2012 for QE Listed Companies
Net Profit (QR million)
QNB
Qatar Islamic Bank
Commercialbank
Doha Bank
ahlibank
International Islamic
Al Rayan Bank
al khaliji
National Leasing
Dlala
Qatar Oman Co
Islamic Holding
Banks & Financial Services Sector
Zad Co
Qatar-German Medical Co
Salam International Investment
Medicare Group
Qatar Cinema & Film Distribution Co
WOQOD
Meat & Livestock
Al Meera
Consumer Goods & Services Sector
Qatar Industrial Manufacturing Co
Qatar National Cement Co
Industries Qatar
Investors Group
Qatar Electricity & Water Co
Mannai
Aamal
Gulf International Services
Industrial Sector
Qatar Insurance Co
Doha Insurance Co
General Insurance & Reinsurance Co
Al-Khaleej Insurance Co
Qatar Islamic Insurance Co
Insurance Sector
United Development Co
Barwa
Ezdan Real Estate Co.
Mazaya
Real Estate Sector
Qatar Telecom
Vodafone Qatar
Telecom Sector
Qatar Navigation Co
Warehousing
Nakilat
Transport Sector
Total Market
30/12/2011
30/6/2011
30/6/2012
% Change
7,509.0
1,365.1
1,884.0
1,241.2
442.2
653.0
1,408.4
487.0
215.4
22.6
14.8
4.6
15,247.4
85.0
0.4
158.9
39.1
13.4
1,154.6
64.3
77.3
1,593.0
206.3
444.7
7,930.8
74.0
1,299.7
279.2
533.7
293.9
11,062.1
591.8
65.8
170.1
63.5
45.0
936.2
3,746.6
1,252.4
345.4
48.8
5,393.2
2,605.6
3,516.1
703.3
955.6
702.3
237.9
322.3
691.4
249.1
96.6
16.8
12.8
3.1
7,507.5
51.1
-2.1
81.2
24.2
4.2
599.5
18.5
34.9
811.5
97.4
214.3
4,170.6
32.5
668.8
140.5
103.3
140.7
5,568.0
341.9
37.5
76.2
57.0
33.4
546.0
346.8
752.5
103.7
7.0
1,210.0
1,533.1
-122.3
1,410.8
418.0
30.5
381.2
829.8
17,883.5
4,116.1
736.9
1,016.9
739.9
241.0
340.1
725.2
261.9
106.7
30.3
12.7
4.2
8,332.0
63.8
-3.4
38.2
30.7
8.0
561.0
41.7
46.8
786.8
119.0
225.3
4,036.3
64.2
638.8
168.6
102.8
196.5
5,551.5
302.8
41.4
67.6
59.0
34.8
505.6
298.7
593.7
198.0
6.7
1,097.1
1,352.1
-118.3
1,233.8
440.9
40.5
380.7
862.1
18,369.0
17.1%
4.8%
6.4%
5.4%
1.3%
5.5%
4.9%
5.1%
10.5%
80.7%
-0.8%
33.5%
11.0%
24.8%
62.3%
-52.9%
26.8%
88.4%
-6.4%
125.3%
34.0%
-3.0%
22.2%
5.2%
-3.2%
97.9%
-4.5%
19.9%
-0.5%
39.7%
-0.3%
-11.4%
10.5%
-11.3%
3.5%
4.4%
-7.4%
-13.9%
-21.1%
91.0%
-4.1%
-9.3%
-11.8%
-3.3%
-12.5%
5.5%
32.5%
-0.1%
3.9%
2.7%
2,605.6
711.0
61.7
832.6
1,605.3
38,442.8
Source: QNB Group and QE.
The Banking &Financial Services Sector generated the highest
profit among the different sectors on the Qatar Exchange for
the First Half of 2012, increasing by 11.0% to reach QR8,332
million, compared to QR7,507 million during the same period in
2011. The Industrial Sector followed with a marginal decline by
0.35% to QR5,551 million compared to QR5,568 million during
the same period in 2011.The Telecoms Sector ranked third at
Source: QNB and QE.
6
QR1,234 million, compared to QR1,411 million, Real Estate
Sector at QR1,097 million, Transportation Sector at QR862
million, Consumer Goods & Services Sector QR787 million and
finally the Insurance Sector at QR506 million. Total profit of QE
listed companies increased by 2.7% during the first half of 2012
to reach QR18,369 million, compared to QR17,883 million for the
First Half of 2011.
Top 5 MENA Companies by Market Capitalisation Sep 2012
Company
Sector
Saudi Arabia Basic Industries Co.(Sabic)
Market Value ($bn)
Chemicals
72.8
Al Rajhi Bank
Banks
28.5
QNB Group
Banks
26.1
General Industries
21.3
Telecommunications
21.2
Industries Qatar
Saudi Telecom
Sabic had the Highest Market Value US$72.8 billion, in the
MENA region at the end of September 2012. Al Rajhi Bank
came second with a Market Value of US$28.5 billion followed
by QNB Group, which came third with a Market Value of
US$26.1 billion. Industries Qatar came forth with Market
Value of US$21.3 billion and in the fifth place came Saudi
Telecom with a Market Value of US$ 21.2 BILLION.
Top Ten Ranking Qatari Companies by Market Capitalisation
Company
Market Capitalisation (QR million)
Percentage of Total Market
QNB
95,023
20.3%
Industries Qatar
77,385
16.5%
Ezdan Real Estate Co.
52,254
11.2%
Qatar Telecom
33,794
7.2%
Al Rayan Bank
20,288
4.3%
Commercialbank
18,435
3.9%
Qatar Islamic Bank
18,195
3.9%
WOQOD
14,865
3.2%
Qatar Electricity & Water Co
13,350
2.9%
Barwa
11,479
2.5%
The Banks and Financial Services Sector had the highest
Consumer Goods and Services Sector with 4.6%, the
Market Capitalisation as at 30th September 2012 and held a
Transport Sector with 3.7% and Insurance Sector with 2.4%.
40.1% Share of the Total Market, followed by the Industrial
QNB’s Market Capitalisation was the highest
Sector which accounted for 25.1%. The Real Estate Sector
among the 42 companies on the Qatar Exchange.
ranked third at 15.2%, the Telecome Sector with 8.9%,
The company with the Highest Market Capitalisation in the Banks and Financial Services Sector: QNB
The company with the Highest Market Capitalisation in the Consumer Goods and Services Sector: WOQOD
The company with the Highest Market Capitalisation in the Industrial Sector: Industries Qatar
The company with the Highest Market Capitalisation in the Insurance Sector:
Qatar Insurance Co.
The company with the Highest Market Capitalisation in the Real Estate Sector:
Ezdan Real Estate Co.
The company with the Highest Market Capitalisation in the Telecom Sector:
Qatar Telecom
The company with the Highest Market Capitalisation in the Transport Sector:
Nakilat
Source: QNB Group and QE.
7
QNB INVESTOR
Qatar Exchange Main Financial Indicators (30 September 2012)
Dividend Yield
(%)
0.00
P/B.V Ratio
(Times)
2.70
P/E Ratio
(Times)
16.85
EPS
(QR)
3.97
Comm. Bank of Qatar
8.05
Dlala
2.38
1.33
9.48
7.86
56.22
74.50
3.63
23.26
1.81
11.58
Doha Bank
42.05
8.23
1.63
8.84
6.19
33.64
54.70
Islamic Holding
2.62
3.57
26.85
1.42
10.70
38.20
Al khalij Commercial Bank
5.81
1.17
12.40
1.39
14.77
17.22
Rayan
4.07
2.29
14.04
1.92
11.80
27.00
National Leasing
4.91
1.91
10.42
4.56
24.86
47.50
Qatar Islamic Bank
5.82
1.67
13.06
5.92
46.26
77.30
Intl. Islamic Bank
6.70
1.68
11.78
4.43
31.03
52.20
QNB
2.68
2.20
11.69
11.59
61.64
135.50
Qatar Oman
4.20
1.20
25.56
0.47
9.95
11.91
Banks & Financial Services
4.19
1.91
11.72
5.60
34.30
Medicare
2.82
1.47
24.06
1.62
26.58
39.00
Al Meera
4.27
6.82
18.39
8.92
24.04
164.00
Cinema
2.19
2.72
20.77
3.00
22.95
62.30
Qatar Fuel
2.80
2.88
13.33
21.48
99.50
286.20
Qatar German Co. Med
0.00
0.83
(M) (‫)س‬
(M) (‫)س‬
17.10
14.22
Qatar Meat&Livestock
4.14
5.28
14.91
4.86
13.73
72.50
Salam International
7.40
0.86
13.33
1.01
15.78
13.52
Zad Holding Company
0.00
0.59
11.85
4.88
98.16
57.80
Consumer Goods & Services
3.19
2.21
14.17
6.07
38.86
Aamal
0.00
1.41
17.65
0.90
11.29
Gulf International
4.35
1.69
11.92
2.28
16.04
27.15
Industries Qatar
5.35
2.91
9.89
14.16
48.15
140.10
The Investors
1.99
1.62
29.56
0.85
15.54
25.15
Mannai Corp.
5.56
2.05
11.03
8.98
48.40
99.00
Electricity & Water
4.91
4.39
10.44
12.70
30.15
132.50
Ind. Manf. Co.
5.27
1.81
9.89
5.76
31.43
56.90
National Cement Co.
5.71
2.31
11.31
9.28
45.43
105.00
Industrials
4.80
2.59
10.64
6.91
28.35
Al Kaleej Takaful
6.60
1.18
9.88
4.60
38.62
45.45
Doha Insurance
0.00
1.54
10.26
2.98
19.88
30.60
Qatar Insurance
5.72
1.84
11.28
6.20
38.04
69.90
General Insurance
2.12
1.10
17.02
3.22
49.77
54.80
Islamic Insurance
5.25
3.40
18.43
3.10
16.80
57.10
Insurance
4.49
1.57
12.50
4.67
37.27
Barwa
3.40
0.90
10.48
2.81
32.75
29.45
Ezdan
0.75
1.92
(H) (‫)م‬
0.17
10.38
19.97
Mazaya
0.00
1.09
24.39
0.49
10.85
11.84
United Dev. Company
0.00
0.57
1.66
10.97
32.00
18.23
Real Estate
1.10
1.38
13.59
1.52
14.99
Qatar Telecom
1.56
0.80
14.00
7.57
132.79
106.00
Vodafone Qatar
0.00
1.19
(M) (‫)س‬
7.63
9.05
Telecoms
1.27
0.85
21.42
1.67
42.03
Gulf warehousing Co
3.72
2.40
22.01
1.83
16.79
40.35
Nakilat
5.32
1.23
10.64
1.49
12.86
15.81
Qatar Navigation
5.78
0.67
9.46
6.41
90.86
60.60
Transportation
5.35
0.95
10.61
2.29
25.59
Market
3.61
1.68
12.23
3.74
27.27
Company
Al Ahli Bank
(M) (‫)س‬
Book Value/Share
(QR)
24.75
Stock Price
(QR)
66.90
15.94
Note: The above mentioned indicators were calculated according to the latest reliable financial data.
Definitions :
Stock Price(QR)
Book Value(QR) EPS(QR)
=
=
=
P/E Ratio
=
The latest Closing Stock Price as in the DSM Daily Bulletin.
Shareholders Equity divided by No. of Subscribed Shares.
Earnings (net profit) for the latest 4 Quarters divided by No. of Subscribed
Shares.
Stock Price divided by the EPS.
P/B.V Ratio
= Stock Price divided by the Book value per
share.
Dividend Yield(%) =Cash dividends per share divided by Stock
Price.
M
=Minus ratio due to company losses
according to latest financial data.
H
= The P/E ratio is one hundred times and more.
NA
= Not Available.
DISCLAIMER: All the data appearing in the schedule of Financial Indicators are designated for investors’ perusal and do not in any way constitute an offer or
recommendation to invest in any of the listed securities. The Qatar Exchange does hereby disclaim any responsibilities of any direct and indirect losses and claims
resulting from using these indicators.
Source: Qatar Exchange.
8
GCC Stock Markets and Global Financial Markets
GGCC Stock Markets
Most GCC Markets, with the exception of Saudi Arabia,
made modest gains over September. They were buoyed by
the positive trend in Major Global Markets and Higher Oil
Prices (Brent averaged US$112/barrel in September versus
US$102/barrel in August).
In Qatar, the QE Index rose by 0.3%, narrowing loses in
the year-to-date. Industries Qatar (IQCD) was the top
contributor to the QE Index (up 1.6% MoM). The stock has
bucked the trend on expectations of relatively solid Q3 2012
results and the expected upturn in earnings from the new
QAFCO 5 & 6 fertilizer plants.
The Kuwaiti index rallied on speculation of potential
intervention by the Kuwait Investment Authority, while
in Dubai, the improving real estate market is attracting
investor interest in real estate stocks. In Abu Dhabi, the
market expected a positive outcome from negotiations
between the Emirates Banks Association and the UAE
Central Bank in regards to implementation of new limits on
loans to the public sector. Following a strong performance
in August, the Saudi Tadawul was driven lower owing to
concerns about global growth, particularly growth in the
US, the main export destination for Saudi crude oil.
Table 1: GCC Stock Markets
Index
2011
Aug-12
Sep-12
% Change (in month)
% Change
( year to date )
Bahrain (BAX)
1 ,144
1,086
1,087
0.1%
-4.9%
Kuwait (KSE)
5,814
5,863
5,991
2.2%
3.0%
Oman (MSM)
5,695
5,480
5,534
1.0%
-2.8%
Qatar (QE)
8,779
8,484
8,510
0.3%
-3.1%
Saudi Arabia (TASI)
6,418
7,139
6,840
-4.2%
6.6%
UAE (ADSM)
2,402
2,562
2,605
1.7%
8.5%
UAE (DFM)
1,353
1,548
1,579
2.0%
16.7%
Source: Bloomberg
Global Financial Markets
Most Equity Markets rose during September as Global
Central Banks eased monetary policy to support growth.
The Federal Reserve launched a third round of “Quantitative
Easing” on the 13th of September, deciding to purchase
US$40bn of Mortgage Backed Securities per month for
an undefined time period. The Federal Reserve also said
that it would maintain its extremely low policy rates until
2015. Meanwhile, the European Central Bank launched
a potentially unlimited bond-buying program on 6th
September, permitting it to purchase bonds of member
countries to drive down their borrowing costs. Countries
signing up for the bond-buying program would have to
meet strict policy conditions. Finally, the Bank of Japan
announced on 19th September that it would boost the
size and duration of its bond-buying program to maintain
downward pressure on interest rates and the Yen.
Table 2: World’s Major Stock Markets
2011
Aug-12
Sep-12
% Change (in month)
% Change
( year to date )
Dow Jones
12,218
13,091
13,437
2.6%
10.0%
Nasdaq
2,605
3,067
3,116
1.6%
19.6%
FTSE 100
5,572
5,711
5,742
0.5%
3.0%
DAX
5,898
6,971
7,216
3.5%
22.3%
CAC 40
3,160
3,413
3,355
-1.7%
6.2%
Nikkei 225
8,455
8,840
8,870
0.3%
4.9%
Shanghai
2,199
2,048
2,086
1.9%
-5.1%
Index
Source: Bloomberg
9
QNB INVESTOR
Al Watani Fund 1 Performance
NAV QR 12.57
Al Watani Fund 1 (For Qataris)
Monthly Report for September 2012
Fund’s Objective
The primary aim of Al Watani Fund is to outperform the Qatar Exchange (QE) Index while seeking to reduce the risks associated
with the investment.
Net Asset Value of the Fund for the Month (QR)
Fund Information
Fund Type
Currency
Regulator
Fund Manager
Subscription/Redemption
Management Fee
Auditor
Custodian
Particulars
Open-End Fund
Qatari Riyal
Qatar Central Bank
QNB Banque Privée (Suisse) SA
Monthly
1.5% p.a
KPMG
QNB
83,647,529
Performance Summary
Since Inception (Oct 2005)
Year 2009
Year 2010
Year 2011
MTD (Sept 2012)
YTD (2012)
Beta
Standard Deviation*
W1
25.70%
10.41%
27.67%
1.12%
0.08%
1.80%
0.81
26.09%
QE Index
-31.62%
1.06%
24.75%
0.42%
0.31%
-3.06%
1.00
30.23%
* Since Inception
Fund Manager Comment
The Qatar Exchange (QE) Index registered a 0.31% during the month
completing a hat trick of gains in the past three months. The month
was a tale of two views which resulted in the market gaining 2.42%
in the first two weeks of the month followed by a sharp 2% decline in
the second half of the month. Foreign Institutional Investors (FII’s)
continued selling trend during the month, they net sold approximately
QR 300 million. Our fund performance was robust during the month with
the fund gaining 0.08% however due to the increased volatility in the
market we witnessed a flight to quality blue chip names that included
Qatar National Bank which the fund cannot invest in resulting a marginal
underperformance of 0.23%. We maintained the strong year to end of
September out performance of 4.86%.
The QE Market was relatively volatile during the month as the market
approached three month highs and was technically overbought in the
short term. The market gained against the back ground of the imminent
announcement of the Quantitative Easing (QE) program in the United
States which was expected to lift asset prices. Market activity was robust
during the month, despite of the increased volatility, investors didn’t
shy away from taking positions. Traded value adjusted for one off special
deals increased by 16% month on month. Foreign Institutional Investors
remained net sellers of the market, they continued to pressure the
banking sector coupled by selected selling in telecoms and utility stocks.
The Domestic Banking Sector continued to post strong credit uptake
during the month with loan growth up 1.4% month on month while
year to August 2012 was 18.5%. However, customer deposit growth has
remained a challenge, with month on month growth slowing by 1.6%.
This has continued to put pressure on the banking cost of funds, which
could impact profitability in the medium term. We anticipate portfolio
rebalancing to be driven by third quarter financial results and dividend
payouts expectations for the year end.
Fund Management Team
Sector Allocation
Rue Des Alpes, 3 1201 Geneva
Switzerland
Contact details in Qatar:
Fund Manager: Hassan Abdi CFA, FRM
Tel: (+974) 44252486
QNB - Grand Hamad
PO Box 1000, Doha – Qatar
Disclaimer: The information herein is for illustrative purposes only and
reflects current market practices and is not intended to constitute legal, tax,
accounting or financial advice; investors should consult their own advisers
on such matters. At all times prospective investors considering an investment
in the Fund should carefully read the Articles of Association, the Prospects
and the Terms & Conditions of the Fund. Investors are reminded that past
performance of any investment is not a guide to future returns.
10
QNB is regulated by Qatar Central Bank. All performance changes figures are
net of performance fees.
License No. of Fund I.F/3/2005
Fund Registration No. at Ministry of Economy & Commerce: 31350
Al Watani Fund 2 Performance
NAV QR 12.12
Al Watani Fund 2 (For Non-Qataris)
Monthly Report for September 2012
Fund’s Objective
The primary aim of Al Watani Fund is to outperform the Qatar Exchange (QE) Index while seeking to reduce the risks
associated with the investment
Net Asset Value of the Fund for the Month (QR)
Fund Information
Fund Type
Currency
Regulator
Fund Manager
Subscription/Redemption
Management Fee
Auditor
Custodian
Particulars
Open-End Fund
Qatari Riyal
Qatar Central Bank
QNB Banque Privée (Suisse) SA
Monthly
1.5% p.a
KPMG
QNB
56,556,259
Performance Summary
Since Inception (Oct'2005)
Year 2009
Year 2010
Year 2011
MTD (Sept 2012)
YTD (2012)
Beta
Standard Deviation*
W2
21.20%
11.52%
27.13%
0.70%
0.17%
1.91%
0.82
26.29%
QE Index
-31.62%
1.06%
24.75%
0.42%
0.31%
-3.06%
1.00
30.23%
* Since Inception
Fund Manager Comment
The Qatar Exchange (QE) Index registered a 0.31% during the month
completing a hat trick of gains in the past three months. The month
was a tale of two views which resulted in the market gaining 2.42%
in the first two weeks of the month followed by a sharp 2% decline in
the second half of the month. Foreign Institutional Investors (FII’s)
continued selling trend during the month, they net sold approximately
QR 300 million. Our fund performance was robust during the month with
the fund gaining 0.17% however due to the increased volatility in the
market we witnessed a flight to quality blue chip names that included
Qatar National Bank which the fund cannot invest in resulting a marginal
underperformance of 0.14%. We maintained the strong year to end of
September out performance of 4.97%.
The QE market was relatively volatile during the month as the market
approached three month highs and was technically overbought in the
short term. The market gained against the background of the imminent
announcement of the Quantitative Easing (QE) Program in the United
States which was expected to lift asset prices. Market activity was robust
during the month, despite of the increased volatility, investors didn’t
shy away from taking positions. Traded value adjusted for one off special
deals increased by 16% month on month. Foreign Institutional Investors
remained net sellers of the market, they continued to pressure the
banking sector coupled by selected selling in telecoms and utility stocks.
The Domestic Banking Sector continued to post strong credit uptake
during the month with loan growth up 1.4% month on month while
year to August 2012 was 18.5%. However, customer deposit growth has
remained a challenge, with month on month growth slowing by 1.6%.
This has continued to put pressure on banking cost of funds, which
could impact profitability in the medium term. We anticipate portfolio
rebalancing to be driven by third quarter financial results and dividend
payouts expectations for the year end.
Fund Management Team
Sector Allocation
Rue Des Alpes, 3 1201 Geneva
Switzerland
Contact details in Qatar:
Fund Manager: Hassan Abdi CFA, FRM
Tel: (+974) 44252486
QNB - Grand Hamad,
PO Box 1000, Doha – Qatar
Disclaimer: The information herein is for illustrative purposes only and
reflects current market practices and is not intended to constitute legal, tax,
accounting or financial advice; investors should consult their own advisers on
such matters. At all times prospective investors considering an investment
in the Fund should carefully read the Articles of Association, the Prospects
and the Terms & Conditions of the Fund. Investors are reminded that past
performance of any investment is not a guide to future returns.
QNB is regulated by Qatar Central Bank. All performance changes figures are
net of performance fees.
License No. of Fund I.F/3/2005
Fund registration No. at Ministry of Economy & Commerce: 31350
11
QNB INVESTOR
Business Update
QNB Sponsors the Official Olympic House, Bayt Qatar
Qatar National Bank (QNB), the largest financial institution
in the State of Qatar, and the MENA region, is one of the
major sponsors of Bayt Qatar in Central London, the Official
Olympic House for the Qatar Olympic Committee (QOC)
during the forthcoming Summer Games in London.
Bayt Qatar, also known as the Qatar House, acts as a
symbol of Qatar and brings a little bit of the Qatari spirit to
the heart of London, which is especially pertinent during
the Holy Month of Ramadan. Bayt Qatar was opened from
the 26th of July until the 12th of August, to welcome high
profile, dignitaries, QOC Members, CEOs and Chairmen,
International Sporting Athletes as well as Local, Regional
and International Media.
Being a key sponsor and participant in various local and
international occasions, QNB is always keen to reflect
the social image of Qatar, through representing Qatari
traditions and heritage in the best way possible.
The Bank played a lead role in the country’s actual hosting
of the 2006 Asian Games, providing an army of volunteers
and providing reliable and readily accessible banking
services to organisers, participants and spectators of
the event, which attracted more than 10,500 athletes
representing 45 participating countries and regions from
throughout Asia.
In 2010, QNB Group’s support was instrumental in the
country’s successful bid to host the FIFA World Cup in 2022.
Undoubtedly, the country’s hosting of this spectacular,
world-class sporting event will form a cornerstone for
future CSR activities in the years ahead.
QNB brings China Union Pay to Qatar
Qatar National Bank (QNB), the largest financial
institution in the State of Qatar and the MENA region,
has started accepting China Union Pay (CUP) Cards at
its Point Of Sales (POS). This follows an agreement that
was recently signed with CUP, the largest Card Scheme in
China and Asia.
This new service enables holders of the CUP Cards visiting
the country, to use their cards easily at various POS. The
step will open new horizons between QNB and CUP in the
future. China Union Pay is now available in 127 countries
worldwide, including Qatar. This relationship will be
expanded to cover other channels like QNB’s Internet
payment gateway and its wide network of ATMs in Qatar.
QNB is a leader in the POS and E Acquiring (Electronic
payments) business in Qatar. Recently it has successfully
launched the Tap and Pay contactless cards and became
the first bank to enable customers to pay for purchases
with their contactless cards. Additionally, QNB was the
first acquirer to launch Dynamic Currency Conversion
(DCC) in Qatar. DCC enables merchants to offer overseas
cardholders the choice of paying for their purchases either
in Qatari Riyals or in their local billing currency at the
POS itself. QNB now accepts more than 25 international
currencies and are MasterCard/Visa compliant.
QNB Group is always looking for new ventures that expand
its international reach, so the Bank positions itself as the
best choice for those who look for unique banking services.
QNB Rewards all QNB Qtel Nojoom Visa Card Holders with Triple Points
QNB, the largest financial institution in the State of Qatar
and the MENA region has rewarded Gold and Platinum
QNB Qtel Nojoom Visa cardholders with three times the
normal number of points they earn on their spend on the
credit cards.
With this QNB Qtel promotion, which began on the 20th
of July 2012 and ran for two months, all customers were
able to earn more points through their regular day-to-day
spending. All local, international and internet purchase
transactions were awarded a triple bonus Nojoom
earning rate.
12
Platinum and Gold cardholders enjoyed three times the
earning rate. For Platinum cardholders every QR 5 spent,
they earned 3 Nojoom points, triple the normal rate.
Gold cardholders also earned triple points. For every QR 10
they spend they also earned 3 Nojoom points, instead of
the normal 1 Nojoom point.
All primary and supplementary QNB Qtel Nojoom Visa
credit cards were eligible for this offer. Moreover, all bonus
points earned during this time period were credited to the
cardholder’s Nojoom account two months following
the promotion.
Corporate Update
GCC Banking Sector Shows Strong First Half Results
The GCC Banking Sector continued to grow rapidly in the
First Half of 2012, according to QNB Group analysis.
Profits of the largest 50 banks in the region were up by 5.4%,
compared to the first half of 2011, reaching US$12bn. While
76% of banks in the group were profitable, with average
profit growth of 13%, only 11 out of 50 saw a decline and
only one bank in the group recorded a net loss.
The Banking Sector is skewed towards the very largest
banks, with the top 10 representing 50% of total assets.
Saudi and Emirati Banks make up the bulk of the top 50,
in terms of both number - 12 and 14 respectively - and
aggregate assets, 33% and 28% respectively. Qatar is in
third place, and eight of its banks are included in the group,
representing 13.5% of total assets. 15 of the top 50 banks
are Islamic and represent 19.5% of total assets.
The strongest growth in assets was achieved in Qatar
and Oman, by 20.1% and 19.0% respectively. The assets
growth in Qatar was driven by QNB, which is the largest
bank by assets in the GCC and achieved 25.5% growth in
the year to 30 June 2012. The other 7 banks also averaged
a strong growth rate of 14.7%, led by Qatar Islamic Bank
and Masraf Al Rayan. Qatar’s nominal GDP grew at an
annualised rate of 17% in the First Quarter of the year, and
booming economic activity usually contributes to strong
Bank Asset Growth.
Regional Assets Growth was driven by an expansion in
Loan Portfolios, which grew by 13.6% during the first half
of the year. Growth was particularly strong in Qatar, where
loans surged by 39.7%, largely due to a 55.9% increase at
QNB, which was the most rapid for any bank in the region.
QNB has the largest loan book in the region.
Assets of the Top 50 GCC Banks (30 June 2012)
(total=US$1.28trn, number of banks shown in brackets)
Source: Banks statements & QNB Group analysis
Global Growth Slides While MENA Prospects Strengthen
The Global Economic Outlook looks more downbeat
as major world economies struggle with low Real GDP
Growth. However, prospects for the MENA region have
strengthened due to higher oil prices and increased
government spending, according to a QNB Group review of
the IMF’s October World Economic Outlook, released on the
occasion of the annual IMF meeting held this year in Tokyo.
Global Real GDP Growth has been revised downwards to
3.3% in 2012 and to 3.6% in 2013. The growth outlook for
the global economy has deteriorated as the recovery in
the 35 advanced economies has remained weaker than
expected. As advanced economies account for 51.1% of
Global GDP, this has caused a major drag on the World
Economy.
GDP Growth for the advanced economies has been cut by
0.5% to 1.5% in 2013. The main factors holding growth back
in advanced economies is the implementation of austere
fiscal policies to reduce deficits. The US, the World’s Largest
Economy, is now forecast to a reduced growth of 2.1% in
2013 due to both external and domestic risks. External
Risks are mainly posed by spillovers from the Eurozone
Debt, while domestic risks emerge from a much larger fiscal
contraction, as budget cuts and end of tax holidays come
into play in early 2013.
Meanwhile, growth prospects for the MENA region have
strengthened with a forecast growth of 5.3% in 2012 and
3.6% in 2013.
Growth in the MENA region is two-dimensional; with a
clear distinction between oil exporters and importers. The
gap in the growth outlook between them has widened.
While growth prospects for oil exporters have improved to
6.6% in 2012 (up from 4.8% in the April 2012 forecast), the
prospects for oil importers have substantially declined to
1.2% in 2012 (down from 2.2% in the April 2012 forecast).
Higher oil prices and increased government spending have
been the key differentiating factor that has brightened the
growth prospects for oil exporting countries. The outlook
for oil importing countries remains subdued as political
turmoil and change have led to declining economic activity.
MENA Real GDP Growth (2012-13)
(+1.1) 5.3
MENA
MENA
Oil Importers
(-0.2) 3.6
(-1.0) 1.2
(-0.3) 3.3
(+1.8) 6.6
MENA
Oil Exporters
(+0.1) 3.8
GCC
Advanced
Economies
(-0.1) 3.3
(-0.1) 1.3
(-0.5) 1.5
Source: IMF and QNB Group analysis
(+0.5) 5.2
2012
2013
(+/-) Revision
from July 2012
13
QNB INVESTOR
Community
QNB Group, Qatar Football Association Sign Sponsorship Agreement for 3 Seasons
League and Mr. Ali Shareef Al Emadi, the Chief Executive
Officer of QNB Group entitles QNB to act as the strategic
sponsor for the Qatar National Football Team and His
Highness the Emir Cup, His Highness the Heir Apparent
Cup, and the official sponsor of Sheikh Jassim Cup, and
Qatar Stars League as well as the exclusive sponsor of
Qatar Stars Cup.
For his part, HE Sheikh Hamad bin Khalifa bin Ahmed Al
Thani, President of the Qatar Football Association and
Qatar Stars League expressed sincere thanks to QNB Group’s
CEO, for the usual outstanding commitment and support
the bank dedicate to the Qatari football.
QNB Group, the Leading Financial Institution in Qatar and
the MENA region, signed an agreement with the Qatar
Football Association to sponsor the key championships for
the next three years. The agreement, signed by
HE Sheikh Hamad bin Khalifa bin Ahmed Al Thani,
President of Qatar Football Association and Qatar Stars
Mr. Ali Shareef Al Emadi, said that the sponsorship is
part of the Group’s policy and commitment to support the
country in all the local sports events and tournaments.
QNB hopes to motivate the team to reach International
levels, “We always strive to achieve Qatar’s ultimate goal
through sports association”, he added.
QNB, Qatar’s Ministry of Labor Sign a Memorandum of Understanding to Train Qatari Nationals
QNB, the Largest Financial Institution in the State of Qatar
and the MENA region, signed an agreement with the
Ministry of Labor as part of their cooperation to train and
develop Qatari candidates in the Bank’s training facilities.
The memorandum was signed by Mr. Ali Rashid Al
Mohannadi, QNB’s Executive General Manager - Chief
Operation Officer and Mr. Mohamed Saad Al Miraikhi, the
Director of the National Development Department at the
Ministry of Labor.
As per the memorandum of understanding signed, up to
3 batches of 15 candidates, with both male and female
young nationals receiving training at the QNB Training and
Development Centre in Doha, after being nominated by
the Ministry. QNB is committed to be the leading bank in
14
encouraging and developing young Qataris, through its
participation in such supportive initiatives that meet the
aspirations of the youth. The bank seeks to provide a suitable
environment to make the best use of their skills and talents
in all fields, especially the banking sector.
The training program will include an orientation
session about the bank, in addition to the basics of the
banking sector. The banking products and services will
also be reviewed along with the various skills of sales,
communication and team work.
By the end of the training, QNB will provide the outstanding
trainees an opportunity to join one of its departments as part
of the bank’s policy in support of involving the Qatari youth
in the banking sector.