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H.E. Yousef Hussein Kamal, the Chairman of the Board of Qatar National Bank (QNB) announced today QNB's financial results for the three months ended 31 March 2008, that clearly demonstrate the success in further developing the range of services and products offered, and the ability to generate strong growth in profitability to its stakeholders.

H.E. the Chairman said that QNB achieved net profit for the three months ended 31 March 2008 of QR917.3 million, up QR264.5 million (40.5%) on the QR652.8 million delivered in March 2007. Total assets grew since March 2007 to QR130.0 billion, representing an increase of QR60.0 billion, or 85.8%.

Loans and advances and financing activities grew to QR77.4 billion, representing an increase of QR30.2 billion, or 64.1%. Customer Deposits and unrestricted investment accounts also grew by QR26.8 billion (50.9%) during the period to reach QR79.5 billion.

Net operating income increased by QR338.0 million (38.6%) to QR1,213 million. The increase in net operating income is mainly due to the increase in net interest income and income from financing activities of QR86.3 million (17.6%) to reach QR577.1 million.

Net Fees and ccommissions grew by QR60.6 million (31.2%) to QR254.8 million. At the same time, dividend income grew by QR3.0 million (3.0%) to QR103.1 million. Net Gains from dealing in foreign currencies grew by QR17.3 million (27.4%) to QR80.4 million.

Total equity at 31 March 2008 amounted to QR13.8 billion, and total market capitalization of the Bank's share increased by QR19.7 billion (75.2%) since March 2007 to reach QR45.9 billion. As a result of the improvement in the Bank's performance, Interim earnings per share increased from QR3.4 in March 2007 to QR4.2 in March 2008.

QNB Al Islami also succeeded in achieving excellent results during the three months of 2008, with financing activities increasing by QR2.8 billion (101%) to reach QR5.6 billion. Net profit for QNB Al Islami was up by QR44.0 million (134%) to reach QR76.9 million. QNB AL Islami total assets increased by QR1.6 billion (21.7%) to reach QR9.2 billion.

H.E. the Chairman added: "The financial results for the quarter ended 31 March 2008 were a direct outcome of the investment strategies adopted by the broadening of the Bank's geographical presence. We have been able to set a good foundation for the activities we shall undertake during the rest of the year.

QNB's position, as a leading financial institution in the region, is further reinforced by the strong growth in profitability and balance sheet and the immense trust our shareholders have placed in us."

Mr. Ali Shareef Al Emadi, QNB's Group Chief Executive Officer, said: "We are totally satisfied with the Bank's achievements on all levels. We have successfully executed the 2007 recommendations of QNB's Board of Directors which resulted in the record breaking profits. Since the beginning of the new year, and in an effort to expand its growing network and offer its customers the best services, QNB made new acquisitions, entered into partnerships with several firms and launched new products and services.

As part of its planned international expansion, QNB acquired 50% of the shares of the Tunisian based Tunisian-Qatari Bank. Similarly, the Bank entered into a strategic partnership with some Kuwaiti companies to establish the "Kuwaiti-Qatari Company for Ijara and Investment" which will offer Islamic financing services within GCC Countries and has also concluded a strategic shareholding partnership in Al Jazeera Islamic Company (AJIC), acquiring 20% of its shares. The Foundation Stone for QNB's tower was laid in the Sudanese capital of Khartoum, after the Bank obtained a license to open a branch.

QNB reached an advanced stage in obtaining the necessary approval from the regulatory and concerned authorities to establish a specialized company at Qatar Financial Center under the name of "QNB Capital" with a capital of QR546 million.

QNB's extensive experience of managing IPOs is evidenced by the tremendous faith shown in the Bank's capabilities by leading Qatari companies. QNB customers, Qataris and Expatriates, were provided with the bank's electronic channels to subscribe to Barwa Real Estate and Qatar Navigation's share capital increase through its EAZYinternet.

The Bank was appointed by Qatar Petroleum (QP) as the Lead Receiving Bank of its IPO for Gulf International Services (GIS) a Qatari shareholding company. Also, the Bank has been selected by Industries Qatar, Qatar Fuel Company (WOQOD), Q-tel, Barwa Real Estate and National Leasing Company (Ijara) to distribute their cash dividends for the year 2007.

QNB Al Islami launched a new product under the name of "Vehicle Lease", thereby being the first Islamic bank in Qatar to make such an offer. This product will allow the financing of vehicles at very competitive profit rates, considered the lowest in the Islamic and conventional banking sector in the State of Qatar.

QNB continued to place emphasis on higher learning and Qatarization. The Bank was one of the sponsors of the 4th Annual Career Fair organized by College of North Atlantic Qatar and Professional Day 2008 organised by Carnegie Mellon University-Qatar, in order to facilitate summer internships and suitable employment after graduation. At the same time, the Bank continued its "Support the Community Strategy" providing support to local social organizations which look after the well being of Qatari nationals.

In sports, QNB continues to actively promote sports among youths in Qatar by partnering with various sports organizations encompassing the four major sports and the traditional Horse and Camel races along with the Tennis Championships and the support the Bank gives to Qatar's Car Rally Champion Nasser Saleh Al Attiyah and his team.

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