(Sukuk.net - The Peninsula) Qatar National Bank (QNB) posted a record net profit of QR 3.653bn for the year ended 2008, the bank announced yesterday.

Reporting the bank's financials at the board meeting to review QNB's financial statements for 2008 end, Minister of Finance and Economy and ex-officio Chairman of the bank's board, H E Yousuf Hussein Kamal said despite difficulties faced by international financial markets, the bank showed a strong performance across the range of its activities and operations thanks to the solid growth of Qatar's economy, the Bank's dedicated efforts and the increasing trust of customers and shareholders.

Kamal said the bank's net profit surpassed the $1bn mark for the first time, with net profit increasing by 45.7 percent. Total assets reached QR152bn, showing a 32.9 percent increase, with loans and advances and financing activities up by QR34bn (51.4 percent) to reach QR 100.1bn. Meanwhile, total deposits and unrestricted investment accounts increased by QR24.9bn or 31.4 percent to reach QR104.3bn.

Operating income increased by QR1.708bn (49.2 percent) to reach QR5.177bn, as a result of strong growth in most sources of income with net interest income and income from Islamic financing increasing by QR923.4m or 47.8 percent to QR2.856bn.

Total shareholders' equity reached QR16.6bn, and given the increase in net profit, earnings per share increased to QR15.4 in 2008, from QR 11.0 in 2007.

QNB Al Islami also managed to achieve strong results in 2008, with financing activities increasing by QR 2.3bn or 50.3 percent to reach QR6.8bn. Net profit increased by QR183m (123 percent) to reach QR331.3m, with total assets reaching QR13bn showing an increase of QR5.8bn (81.3 percent).

These financial statements are subject to the approval of the Qatar Central Bank, Kamal said. Meanwhile, the Board of Directors has recommended to the General Assembly the distribution of a cash dividend of 75 percent of the nominal share value (QR7.5 per share) and a bonus share of 25 percent of the share capital, representing one share for every four shares held. This distribution will be made after the final approval from the QCB.
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