Business WEDNESDAY 13 JANUARY 2021 UKU economy in ‘very difficult’ pperiod, says BoE Governor We'reW in a very difficult period at the moment and there'sth no question that it's going to delay, probably, theth trajectory.

AndrewAn Bailey BUSINESS | 04 BaBank of England Governor QSE 10,838.69 -4.30 (0.04%) FTSE 100 6,754.11 −44.37 (0.65%) DOW 31,036.72 +28.03 (0.090%) BRENT $56.55 (+1.56)

Job openings QNB’s total assets reach QR1 trillion in US fall in THE PENINSULA — QNB’s disciplined approach towards November For the first time in history of the region, execution of its long-term strategy QNB became the first banking institution enabled the Group to achieve QR1 BLOOMBERG to record total assets of QR1 trillion ($282bn), representing an increase of 9 trillion Total Asset milestone after US job openings fell in percent from last year. QNB’s disciplined 56 years of successful operation November by less than approach towards execution of its long- since inception. forecast, indicating labor term strategy enabled the Group to demand remained relatively achieve QR1 trillion Total Asset milestone steady before the resurgent after 56 years of successful operation The net profit of QNB, for the full virus began to weigh on since inception. year ended December 31, 2020 employment. QNB announced yesterday its results The number of available for the year ended December 31, 2020. reached QR12bn ($3.3bn). positions eased to 6.53 million The net profit of QNB, the largest from a revised 6.63 million in financial institution in the Middle East The growth in total assets was October, according to the and Africa (MEA) region, for the full year Labor Department’s Job ended December 31, 2020 reached mainly driven by strong growth in Openings and Labor Turnover QR12bn ($3.3bn), a decrease of 16 percent Loans and Advances by 7 percent Survey, or JOLTS, released compared to last year. to reach QR724bn ($199bn). Tuesday. The median pro- Operating Income increased by 1 A view of QNB Group head office in Doha. jection in a Bloomberg survey percent compared to last year despite of economists was for 6.45 the impact of COVID-19 and the decline million vacancies. The figure in oil prices. This reflects QNB Group’s driven by strong growth in Loans and liability management capabilities helping to 107 percent as at December 31, 2020. doesn’t include openings success in maintaining growth across Advances by 7 percent to reach QR724bn to reduce its loans to deposits ratio from Total Equity increased by 2 percent involving workers recalled the range of revenue sources. ($199bn). On the funding side, QNB 99.2 percent to 98 percent as at to reach QR97bn ($27bn) as at December from layoffs or positions only Considering the long-term financial diversified its customer deposits gener- December 31, 2020 mainly due to con- 31, 2020. Earnings per Share reached offered internally. impacts of COVID-19, QNB Group ation which helped to increase deposits servative credit underwriting during the QR1.19 ($0.33), compared to QR1.45 The decrease in job decided to set aside an additional by 8 percent, to reach QR739bn ($203bn) year and more focus on deposit gener- ($0.40) in December 2019. openings included fewer QR5.8bn in respect of loan loss provi- from December 31, 2019. ation given the current low interest rate At December 31, 2020, QNB Group vacancies in the education and sions as a precautionary measure, which During the year, QNB Group renewed environment. reported robust levels of capital health services, leisure and affected the net profit for the year. its drive for cost rationalisation in The ratio of non-performing loans measured in terms of the Capital Ade- hospitality and information The Board of Directors have recom- addition to sustainable revenue gener- to gross loans amounted to 2.1 percent quacy Ratio at 19.1 percent, higher than industries, as well as state and mended to the General Assembly the dis- ating sources. This has helped QNB as at December 31, 2020, one of the the regulatory minimum requirements local governments. tribution of a cash dividend of 45 percent Group to materially improve the effi- lowest amongst financial institutions in of the Central and Basel Separations, which include of the nominal share value (QR0.45 per ciency (cost to income) ratio from 25.9 the MEA region, reflecting the high Committee. QNB Group serves a cus- layoffs and quits, rose by share). The financial results for 2020 percent to 24.3 percent which is con- quality of the Group’s loan book and the tomer base of approximately 20 271,000 to 5.41 million, the along with the profit distribution are sidered one of the best ratios among the effective management of credit risk. The million customers supported by highest since April. The subject to Qatar Central Bank (QCB) large financial institutions in the MEA Group’s conservative policy in regard to 28,000 staff resources operating from number of quits were little approval. region. provisioning for potential loan losses 1,000 locations and more than 4,300 changed at 3.16 million, still The growth in total assets was mainly QNB strengthened its asset and resulted in the coverage ratio improving ATMs. the highest since February. HSBC launches Voice ID Wave 2 of QFTH to cover THE PENINSULA — DOHA HSBC has announced more sectors: Official the launch of Voice ID in Qatar enabling retail LANI ROSE R DIZON of regulatory technology, particularly in the customers to access THE PENINSULA fight against financial crime and money their accounts by using laundering. their own voice. HSBC The Wave 2 of Qatar FinTech Hub’s (QFTH) “Regtech is very important to make life is already one of the incubation and accelerator programmes, easier for controllers or regulators, but also world’s largest users of which are set to begin in March, will cover for , specifically around the area of biometric technology more financial technology (fintech) sectors, anti-money laundering and all the compo- for an official has said. The Wave 1 of the QFTH’s nents of ‘Know Your Customer’ (KYC). We Managing Director of the Financial Sector and has invested $2.8bn programmes, which focused on the payments see a lot of future here. Another area that is Office at QFC, Henk Jan Hoogendoorn, speaking globally in technology sector, has attracted over 750 fintech startup very important is cyber , to protect at the Bangladesh Forum Qatar function. in H1 2020 to make the applicants from 72 countries last year. the data of these individuals, but also the bank simpler, safer and more customers which is used to Speaking to The Peninsula on the sidelines data of the banks,” Hoogendoorn added. “The pandemic is a catalyst of fintech. personalised to customer needs. verify their identity in the most of the Bangladesh Forum Qatar’s Members’ It may be noted that the New Zealand’s Fintech will grow quicker now, because “We continue to upgrade and secure way. The new form of Night in Doha recently, Managing Director of central bank has recently announced that people realise it’s easier to do things without digitise our technology infra- verification aims to make the the Financial Sector Office at Qatar Financial one of its data systems has been breached cash and ordering through e-commerce. structure to deliver outstanding process easier for customers by Centre (QFC), Henk Jan Hoogendoorn, said the by an unidentified hacker who potentially Fintech plays an important role there. And customer experience. With Voice reducing the need to memorise QFTH is currently still in the process of accepting accessed commercially and personally sen- fintech companies in Europe, US, and in Asia, ID our customers will have easier PINs and answer additional applications for the programmes. sitive information. Cybersecurity attacks, have discovered that they can do things better access to their accounts without security questions. “The Qatar FinTech Hub is the flagship which have been evolving and getting more than the old fashioned banks. So they are chal- compromising any of the secure “All customers over the age Qatar fintech initiative run by the Qatar Devel- sophisticated, continues to be a major chal- lenging the banks now to do things better. And features as their voice will be of 18 can register for Voice ID opment Bank (QDB), the QFC is also a business lenge in the financial sector. According to they are not only disrupting, but they are also their password. They will be able by calling our contact centre developer, and the Qatar Central Bank (QCB) reports, the banking industry has also faced partnering with the banks. And it’s a task of to enjoy a seamless and fast and following a few simple is overlooking it. We all work together to a surge in the number of cyber security the regulators to act as the controller to ensure service,” said Omar Al Ansari steps,” Al Ansari added. attract all kinds of fintechs. The second wave attacks during the COVID-19 pandemic. the systems are fine,” Hoogendoorn added. (pictured), Head of Wealth and HSBC has been in Qatar for will have more sectors including Islamic Hoogendoorn highlighted the impor- The QFTH caters to both local and Personal Banking in Qatar. 66 years and is committed to fintech, but also things on small and medium- tance of fintech as well as partnerships global fintech entrepreneurs and startups With the use of voice bio- bringing new ways of banking sized enterprises (SMEs), regulatory tech- between fintech companies and banks to who are looking for a launchpad and a hub metrics, HSBC Voice ID creates to a dynamic market in the nology and insurance technology,” he added. counter the growing fraudulent activities in the Middle East to accelerate their growth a unique voiceprint for Middle East region. Hoogendoorn reiterated the importance in the financial sector. at an international level. Qatargas completes first commercial ship-to-ship transfer of LNG cargo

THE PENINSULA — DOHA volumes as efficiently as possible into key markets. Moreover, this will be an Qatargas Operating Company Limited We are delighted to announce attractive option for our potential cus- (Qatargas) announced yesterday the this shipping breakthrough as tomers with limited shipping capacity completion of the first-ever it is for the first time that one and for those who are looking for smaller commercial ship-to-ship (STS) transfer or irregular sized cargo parcels.” of a liquefied natural gas (LNG) cargo of the largest LNG vessels, a He added: “STS transfers such as involving a Q-Flex LNG vessel. The Q-Flex, is involved in a this one will optimise our shipping transfer took place at Subic Bay, Phil- capabilities by using our most efficient ippines. commercial STS operation. LNG vessels to shift volumes into key A full cargo of 212,000 cubic metres high-value markets. I would like to aboard the Qatargas-chartered Q-Flex LNG is being transferred from Qatargas-chartered Q-Flex LNG vessel, Khalid bin Khalifa Al Thani, thank PetroChina, who are one of our vessel ‘Mesaimeer’ was loaded at Ras ‘Mesaimeer’ to ‘Cool Voyager’ at Subic Bay, Philippines. Qatargas Chief Executive Officer long-term partners in the LNG industry, Laffan Port on December 18, 2020 and for their support and cooperation.” delivered as two separate parcel dis- parcel as a delivery to Jiangsu LNG ter- accomplishment, Khalid bin Khalifa Al first time that one of the largest LNG The LNG vessel, ‘Mesaimeer,’ is on charges. One parcel was delivered as minal, China. Both sales were made to Thani, Qatargas Chief Executive Officer, vessels, a Q-Flex, is involved in a com- a long-term charter to Qatargas and the ship-to-ship transfer in Subic Bay PetroChina as the customer. Com- stated: “We are delighted to announce mercial STS operation. This achievement operated by NSQL – Nakilat Shipping on January 6, 2021 and the second menting on this significant this shipping breakthrough as it is for the will enable us to transport considerable (Qatar) Limited. 02 BUSINESS WEDNESDAY 13 JANUARY 2021 BFQ to empower Bangladesh entrepreneurs in Qatar

THE PENINSULA — DOHA During the second half of the The Bangladesh Forum Qatar year, BFQ plans to organise a (BFQ), a Qatar Financial Centre workshop for SME entrepreneurs (QFC) registered business forum in Qatar, relaunch the BFQ formed by Bangladeshi profes- sionals and business people website with more interactive from diverse fields in Qatar, has and connecting features, hold a announced its plans for the next networking session with other two years which includes Business forums and QFC empowering Bangladeshi entre- members, organise awareness preneurs in Qatar. The forum celebrated its webinar/workshop on VAT Members’ Night to mark the mechanism targeting Bangladesh beginning of the term for the businessman in Qatar. new executive committee (2021-22) at the Sheraton Grand Ambassador of Bangladesh to Qatar, H E Md. Jashim Uddin (fifth right, front); Bangladesh Forum Qatar (BFQ) President, Mohammad Shafiqul Doha Hotel recently. The event hinder the desired success, spe- Islam (fourth right, front), with other officials and members of BFQ during the Members’ Night at the Sheraton Grand Doha Hotelecently. r was attended by the Ambas- cially the lack of effective follow sador of Bangladesh to Qatar up to ensure continuity and H E Md. Jashim Uddin and other titled ‘Made in Bangladesh’, Bank in Bangladesh. sectors of Bangladesh as the opportunities, and initiate a fruitful execution of great ideas. senior officials from the Bang- which showcased products and The new President for the second largest RMG exporter in mega event idea to host the He also emphasised to improve ladesh Embassy; Managing services of various sectors from term 2021-22, Mohammad the world. BGMEA fair in Qatar to shore up further economic relationship Director of Financial Sector Bangladesh, and was attended Shafiqul Islam presented the During the second half of the the support of various state between two brotherly countries Office at QFC, Henk Jan Hoog- by senior members of Bang- new committee with four major year, BFQ plans to organise a agencies in Qatar and Qatar and Bangladesh. endorn, and other BFQ ladesh Government and prom- functional units and gave a high- workshop for SME entrepre- Bangladesh. Henk Jan Hoogendorn, members. inent business icons in Qatar. A light of the new committee’s neurs in Qatar, relaunch the BFQ In his speech, the Ambas- Managing Director of Financial During the event, which was number of corporate social ini- plans for the next two years. website with more interactive sador congratulated the new Sector Office at QFC also echoed inaugurated by BFQ Vice Pres- tiatives were taken by the forum During the first half of 2021, BFQ and connecting features, hold a committee and appreciated the the same appreciation and ident, Captain Shah Alam with during the pandemic. A webinar plans to arrange a series of networking session with other noble endeavor of BFQ. He promised the full support of a welcome speech, the outgoing titled ‘Bilateral & Synergistic webinar discussions to focus and Business forums and QFC expressed the renewed com- QFC to bring synergy in all BFQ President Dr. Rashed Noman Opportunities between Qatar & promote the Startups Ecosystem members, organise awareness mitment of Bangladesh embassy efforts in the future. He also presented the significant mile Bangladesh’ was organised and in Bangladesh, Webinars for webinar/workshop on VAT to support all future BFQ initia- vowed to work with the new stones achieved by the forum participated by prominent COVID-19 vaccine awareness, mechanism targeting Bangla- tives that contribute to the committee to develop new plat- in 2020. business leaders in addition to Cultural week during March, and deshi businessman in Qatar, hold upliftment of Bangladesh’s forms for dialogues that will This includes the first ever the Ambassador of Bangladesh Online workshops focusing on regular ideation sessions to image in Qatar. He also reit- bring mutual economic benefits Bangladeshi Trade Fair in Qatar and CEO of Standard Chartered investment opportunities in RMG identify investment erated the usual challenges that for Bangladesh and Qatar. Ahlibank names winner of Al Rabeh Savings Scheme Building sales dominate weekly THE PENINSULA — DOHA Following much anticipation, property deals: Ezdan Report Mona M Al Khayyat was named as winner of December 2020 THE PENINSULA— DOHA Mega cash prize Al Rabeh Savings Scheme QR2,022,000 Buildings of all types including draw. The draw was conducted with Ahlibank. The prize will Al Namla further added: residences, residential buildings under the presence of a repre- help me diversify my invest- “The Al Rabeh Savings Scheme and complexes have formed the sentative of the Ministry of ments as I look to the future.” is a savings accounts with cus- chunk of the weekly property Commerce and Industry and Ahlibank’s Deputy CEO - tomers having a chance to enter sales market generating up to Hassan Al Sai who delivered the Business Support, Services & the monthly and quarterly QR2.6bn, or 97 percent, of the big news to the winner. Human Recourses, Mohamed draws. Our vision is to be a Bank total sales volume. Land plots Mona Al Khayyat, said: “I Al Namla said, said, “Ahlibank at the heart of community and generated up to QR78m, or 2.9 was very happy when I received is delighted to announce Mona therefore we have created the percent of the total sales, said a call from Hassan Al Sai to M Al Khayyat as the winner of Al Rabeh as a ‘best in class’ Ezdan Real Estate report which inform me that I was the winner the QAR 2,022,000 December Savings Scheme. was sponsored by Sak Partner- the Pearl Region, while Al-Mirqab hospital or school, Sharekna of the Al Rabeh December 2020 2020 draw. We are always To save and win big with Al ships Company. area witnessed the sale of another offers you feasibility studies, Mega cash prize of QAR looking at building long-term Rabeh Savings Scheme, visit any According to the data tower at a value of QR212.3m. licenses and good planning by 2,022,000 prize. I have been a relationships with our clients by Ahlibank branch located across gleaned from the real estate Referring to the rental rates specialized engineers and customer for over 25 years and providing the right products and the country with a valid Qatari bulletin released by the Real of Ezdan Real Estate Company, experts, as well as secures funds have been extremely satisfied services. ID or passport. Estate Registration Department Musheirb Towers, which is one for undertaking the project and during the period from of the most important residential construction in a record time at December 27-31, 2020, showed projects and enjoy a vital location a prime cost only, without cal- that the registered property in the center of Doha, features culating any profit margin for sales generated a total value of 803 residential units, all of them Sak Partnership. QR 2.7bn and the operations consisting of two rooms. This saves 40 percent of the were distributed among eight The monthly rent for a fur- total cost of the project for the municipalities: Umm Salal, Al nished apartment starts at landlord, in return for a stake Khor, Al Dhakhira, Al Doha, Al QR3900, while the monthly equivalent to one third of the Rayyan, Al Shamal, Al Daayen, rent for an unfurnished project only for Sak. At the same Al Shehaniyah and Al Wakra. apartment starts at QR3750. time, the landlord may choose to The deals included the sales ‘Sharekna’ is a smart real divest the joint venture agreement. of vacant lands, residences, multi- estate product provided by Sak Sak Company offers 5 percent use buildings, multi-use land lots Partnership as a solution for commission for realtors interested and residential buildings. landlords of vacant land lots, to work under Sharekna. Doha Municipality acquired enabling them to transform the Ezdan Real Estate Company the highest deals in terms of lands into real estate projects has more than 22,800 resi- value through the sale of a that generate continuous gains dential units, and around 790 tower in the Onaizah area, at a for life. The project philosophy commercial units inside Doha value of QR609m. The tower is based on coupling strength and its environs, including Al spans over an area of 4,030 and success of any project. Wakra and Al Wukair. The square meters, at a price of Whether you are a landlord company continues to invest in QR14,039 per square foot. for a vast or small land lot, the real estate sector and con- Doha has also witnessed the suitable for developing a resi- tribute to real estate devel- sale of two towers at the same dential or commercial complex, opment in the State of Qatar on price, each at QR467m located in building or tower, or even a a large scale. Fiat Chrysler teams with Silicon Microsoft Valley startup on new air taxi announces BLOOMBERG Surface Pro 7+ Fiat Chrysler Automobiles NV Electrification within the for Business will help Archer, a California transportation sector startup, try to reduce production whether on roads or in IANS — SAN FRANCISCO costs on a proposed electric aircraft designed to reduce the air is the future and Microsoft yesterday announced traffic congestion and pollution. with any new and rapidly Surface Pro 7+ that will be sold The automaker’s low-cost developing technology, only to commercial and educa- supply chain and expertise in scale is important. tional customers. The new model advanced materials and engi- sports the same 12.3-inch display, neering will help to make a choice between three Intel Archer’s vehicle more eVTOLs. The goal is to create an processors, and SSD (solid-state affordable, the companies said environmentally friendly vehicle drive) options up to 1TB. Like the in statement Tuesday. Archer capable of whisking two to a Pro 7, the 7+ can mutate from said it plans to unveil its aircraft dozen passengers on short more-or-less notebook form early this year, with production jaunts far above automobile factor to tablet, with or without intended to start in 2023. traffic in crowded cities, such as optional keyboard still attached. “Electrification within the Beijing, Dubai, Los Angeles and “Surface Pro 7+ is purpose- transportation sector whether Sao Paulo. built with the needs of our on roads or in the air is the future Palo Alto, California-based business and education cus- and with any new and rapidly Archer said its first aircraft will tomers in mind,” asserted Robin developing technology, scale is be able to travel as far as 60 Seiler, a corporate vice president important,” Doug Ostermann, miles (almost 100 kilometers) at in the Microsoft Devices group, Fiat Chrysler’s head of global 150 miles an hour. Fiat Chrysler in a post on a company blog. business development, said in has collaborated on cockpit Surface Pro 7+ joins the the statement. He cited mutual design elements of the vehicle. Surface for Business portfolio - benefits from the partnership German electric taxi startup offering the versatility, connec- and said it would hasten the Lilium announced that former tivity and security that business arrival of new transportation Airbus SE Chief Executive Officer and educational institutions need options. Tom Enders had joined its board to adapt to changing landscape, Archer is one of numerous of directors. according to the post. It comes companies working to spur the The electric air-mobility with the latest 11th Gen Intel Core market for a new breed of air market could be valued at $1.5 Processors, with 2.1 times faster taxi called electric vertical trillion by 2040, Archer said, performance, and longer battery takeoff and landing aircraft, or citing Morgan Stanley research. life of up to 15 hours. WEDNESDAY 13 JANUARY 2021 BUSINESS 03

QNB surpasses Total Assets of One Trillion Qatar Riyals with a strong performance despite the global pandemic

Key Highlights International Presence Net Profit for the full year reached QR12 billion, a decrease of 16% from last year Total assets exceeded QR1.0 trillion, up by 9% from December 2019 Loans and advances reached QR724 billion, up by 7% from December 2019 Customer deposits reached QR739 billion, up by 8% from December 2019 Improved loans to deposits ratio from 99.2% to 98.0% Improved cost to income ratio from 25.9% to 24.3% Earnings per share reached QR1.19 Total equity reached QR97 billion, up by 2% from December 2019 QNB Group’s presence spans more than 31 countries serving approximately 20 million customers through more than 1,000 locations, 4,300 ATMs supported by 28,000 staff

Subsidiaries & Associates of QNB Group QNB Group Country % Ownership QNB Capital LLC Qatar 100% QNB Suisse S.A. Switzerland 100% QNB Financial Services Qatar 100% QNB Tunisia Tunisia 99.99% Creating long-term shareholder value through sustainable and profitable growth QNB Finansbank Turkey 99.88% Income statement results: Net Profit for the full year reached QR12.0 billion, a decrease of 16% compared to last QNB ALAHLI Egypt 95% year. Operating Income increased by 1% compared to last year despite the impact of Covid-19 and the decline in oil prices. This reflects QNB Group’s success in maintaining growth across the range of revenue sources. QNB Indonesia Indonesia 92% The headwinds arising from the Covid-19 pandemic prompted QNB Group to take all necessary actions to protect Al-Mansour Investment Bank Iraq 54% the well-being of the employees, customers and shareholders. Considering the long-term financial impacts QNB Syria Syria 51% of Covid-19, QNB Group decided to set aside an additional QR5.8 billion in respect of loan loss provisions as International UAE 40% a precautionary measure. Furthermore, QNB Group implemented a number of safety measures to protect its employees and operations from potential disruptions and complied with all applicable health regulations in Housing Bank for Trade and Finance Jordan 35% countries in which QNB Group operates. Al Jazeera Finance Company Qatar 20% During 2020, QNB Group renewed its drive for cost rationalisation in addition to sustainable revenue generating Transnational Incorporated Togo 20% sources. This has helped QNB Group to materially improve the efficiency (cost to income) ratio from 25.9% to 24.3% which is considered one of the best ratios among the large financial institutions in the MEA region. Balance sheet drivers: For the first time in history of the region, QNB became the first banking institution to Operating Income up by 1% to reach record total assets of QR1.0 trillion, representing an increase of 9% from last year. QNB’s disciplined approach towards execution of its long-term strategy enabled the Group to achieve the One Trillion Qatar Riyal Total Asset milestone after 56 years of successful operation since inception. QR25.4 billion The growth in total assets was mainly driven by strong growth in Loans and Advances by 7% to reach QR724 billion. On the funding side, QNB diversified its customer deposits generation which helped to increase deposits by 8%, to reach QR739 billion from 31 December 2019. Net Profit (QR billion) Operating Income (QR billion) QNB strengthened its asset and liability management capabilities helping to reduce its loans to deposits ratio from 28.0 99.2% to 98.0% as at 31 December 2020 mainly due to conservative credit underwriting during the year and more 25.2 25.4 focus on deposit generation given the current low interest rate environment. 14.4 15.0 24.1 13.8 22.9 Credit quality: In 2020, QNB Group materially increased its loan loss provisioning by QR5.8 billion, primarily to 13.1 22.8 12.4 protect itself from potential loan losses due to the ongoing economic challenges faced by borrowers in key markets 12.0 21.0 where QNB Group operates. Despite the above, the ratio of non-performing loans to gross loans amounted to 2.1% 11.3 as at 31 December 2020, one of the lowest amongst financial institutions in the MEA region, reflecting the high quality of the Group’s loan book and the effective management of credit risk. The Group’s conservative policy in regard to provisioning for potential loan losses resulted in the coverage ratio improving to 107% as at 31 December 14.0 7.5 2020. Capital strength: At 31 December 2020, QNB Group reported robust levels of capital measured in terms of the Capital Adequacy Ratio at 19.1%, higher than the regulatory minimum requirements of the Qatar Central Bank and 7.0 3.8 Basel Committee. Top-tier credit ratings QNB Group’s solid financial strength is underpinned by top tier credit ratings that continues to attract institutional, 0.00 0 corporate and individual customers to bank with QNB, and for investors and markets to believe in the Group’s 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 strong financial position and strategy. Operating Income increased by 1% to QR25.4 billion QNB remains the highest-rated bank in Qatar and one of the highest-rated banks in the world with ratings of Aa3 from Moody’s, A from S&P and A+ from Fitch. These ratings are a testament to our capital strength, governance, prudent risk management, business and operating model. This provides us with a competitive advantage to access Total Assets (QR billion) global capital markets for wholesale funding and enables us to continue our growth and expansion plans in line with our strategy. 1,100 1,025 Tapping new funding sources 945 862 The year 2020 opened up new funding opportunities for QNB Group under its EMTN programme, including a 811 successful completion of four public debt issuances namely, USD600 million forty year Formosa bond issuance in 825 720 January, USD1 billion seven year term note issuance in February, USD 1 billion five year term note issuance in May followed by a debut five year Green bond for USD600 million in September. QNB Group’s first green benchmark bond became the first-ever green bond issued from Qatar and the largest green 550 bond issuance by a financial institution in the MENA region. These issuances were part of QNB Group’s ongoing strategy to ensure diversification of funding in terms of type, tenor and geography. In addition, QNB Group completed the syndication for its global dual tranche USD3.5 billion unsecured term loan 275 facility in November 2020. The new term loan facility included tranches of USD2.0 billion three-year and USD1.5 billion five-year tranches. All of these deals attracted strong interest around the world from key global investors, reflecting investors’ 0 confidence in QNB Group’s financial strength and its position as the largest financial institution in the Middle 2016 2017 2018 2019 2020 East and Africa region and demonstrates our standing as a high quality issuer and confirmation of our successful strategy of becoming a leading bank in MEASEA. Total Assets increased by 9% to QR1,025 billion Creating and delivering value Based on QNB Group’s continuous strong performance, driven by its strength and international footprint, QNB Financial Highlights brand was recognised as the most valuable banking brand in the MEA region by Brand Finance (2020), with a brand value of USD6.03 billion in 52nd place globally. In addition, QNB Group established its leading position among the (QR billion) December 2020 December 2019 Change top 500 global brands according to the latest Brand Finance Global 500 report. Net Profit 12.0 14.4 (16%) QNB Group recently received a number of prestigious awards including: Operating Income 25.4 25.2 1% 1st in MEA in The Banker’s list of ‘Top 1000 World Banks’ 2nd in Forbes list of the Top 100 Companies in the Middle East 2020 Total Assets 1,025 945 9% Best Digital Wallet of the Year- Middle East and Best Self Service Banking- Middle East by The Digital Banker Best Private Bank in the Middle East and Qatar by Global Finance Loans and Advances 724 679 7% The Year’s Leader in Trade for Qatar by Global Trade Review (GTR) magazine Customer Deposits 739 684 8% Sustainability Total Equity 97 95 2% QNB Group defines sustainability as delivery of long-term integrated value in financial, environmental, social and corporate governance terms (ESG) for all QNB stakeholders. The QNB Group-wide sustainability framework consists of three pillars Sustainable Finance, Sustainable Operations and Beyond banking/community investment. Key Performance Indicators December 2020 December 2019 All three pillars support QNB’s goal of sustainable financial performance, by reducing risks, opening new Earnings Per Share (QR) 1.19 1.45 opportunities and strengthening QNB’s brand. QNB’s sustainability framework was developed in-line with Cost to Income Ratio 24.3% 25.9% international standards, including the UN Sustainable Development Goals (UNSDG) and Global Reporting Initiative (GRI) reporting standards. The framework ensures QNB manages its most material ESG issues, as well as enables Loans to Deposits Ratio 98.0% 99.2% our continued support of the Qatar National Vision 2030 (QNV2030) and commitment to the United Nations Global NPL Ratio 2.1% 1.9% Compact (UNGC). As a result of these efforts, QNB Group was endorsed with an “A” sustainability rating by MSCI, the global index provider, and ranked number one in Qatar for sustainability by ESG Invest, a leading rating and Coverage Ratio 107% 100% investment research agency in the Middle East. Capital Adequacy Ratio (CAR) 19.1% 18.9% Effective and pragmatic corporate governance measures Liquidity Coverage Ratio (LCR) 164% 160% During 2020, the Covid-19 pandemic was a real test to the robustness and efficiency of QNB Group’s governance Net Stable Funding Ratio (NSFR) 104% 104% system. The exceptional circumstances witnessed across the world were an opportunity to examine the Group’s preparedness, its decision-making mechanisms as well as its ability to maintain operations and activities and fulfil its obligations towards shareholders, investors, customers and all related parties under extraordinary and constantly varying circumstances that required a significant degree of resilience and ability to adapt to new Proposed Dividends developments. Cash Dividends of 45% of the nominal value of the share. In these circumstances, the Group attached utmost importance to preserving the Group’s corporate governance QNB, the largest financial institution in the Middle East and Africa (MEA) region, announced that the Board of framework and practices by ensuring business continuity, operational efficiency and effective internal controls and Directors, during its meeting held today has approved its results for the year ended 31 December 2020. risk management systems, in order to ensure the highest levels of safety in performing all activities and protecting QNB Group achieved sustainable financial results for 2020 and in line with QNB Group’s aim of maximising returns customer interests, as well as shareholder and investor rights. The Group also attached particular importance to the to its shareholders, the Board of Directors have recommended to the General Assembly the distribution of a cash principle of transparency by adhering to the highest standards of disclosure, maintaining communication channels dividend of 45% of the nominal share value (QR0.45 per share). The financial results for 2020 along with the with all stakeholders and providing them with the latest updates about its work practices, the precautionary proposed profit distribution are subject to Qatar Central Bank (QCB) approval. measures to be followed and ways to access services through alternative channels. The year 2020 had another year of sustainable performance, one of the high quality set of results in the Group’s Group statistics history helping to build resilience to unexpected global economic headwinds, demonstrating a steady momentum of QNB Group serves a customer base of approximately 20 million customers supported by 28,000 staff resources business growth despite Covid-19. operating from 1,000 locations and more than 4,300 ATMs.

Financial Highlights

Call +974 4425 2444 or visit qnb.com 04 BUSINESS WEDNESDAY 13 JANUARY 2021 UK economy in ‘very difficult’ Oil nears $57 as supply tightens period, says BoE Governor REUTERS — LONDON REUTERS — LONDON Oil hit an 11-month high just Brent crude was up 59 below $57 a barrel yesterday as cents, or 1.1 percent, at Bank of England Governor tighter supply and expectations $56.25 a barrel by 1440 Andrew Bailey (pictured) said for a drop in US inventories Britain faced a very difficult offset concerns over rising GMT after touching its few months ahead due to a coronavirus cases globally. highest since last February resurgence in COVID-19 cases, Saudi Arabia plans to cut at $56.75. US West Texas but played down suggestions output by an extra 1 million Intermediate (WTI) gained that cutting interest rates barrels per day (bpd) in Feb- 47 cents, or 0.9 percent, to below zero would be a ruary and March to keep inven- straightforward way to boost tories in check. The latest US $52.72. growth. supply reports are expected to His comments followed show crude stocks fell for a fifth finance minister Rishi Sunak’s estimate of 4.9 percent he said straight week. warning on Monday that the - likely around 6.5 percent. Brent crude was up 59 steady in February. Record cuts economy would likely get Bailey said economic cents, or 1.1 percent, at $56.25 by OPEC and its allies last year worse before it gets better, activity during the first quarter a barrel by 1440 GMT after helped oil to recover from his- with the country now in its would be depressed until touching its highest since last toric lows in April. Some ana- third national lockdown and COVID-19 vaccines were wide- February at $56.75. US West lysts see further gains as likely. struggling to contain the spread spread enough to allow a lifting Texas Intermediate (WTI) “We advise investors with of the coronavirus. of some of the lockdown A worker walks inside the Brazil’s Petrobras P-66 oil rig in the gained 47 cents, or 0.9 percent, a high risk tolerance to be long “(We’re) in a very difficult restrictions. offshore Santos Basin in Rio de Janeiro, Brazil. to $52.72. Brent or to sell its downside period at the moment and Bailey struck a more scep- “Saudi Arabia in particular price risks,” said Giovanni there’s no question that it’s tical tone on the possibility of is ensuring, through its addi- Staunovo of UBS. American Petroleum Institute, However, oil price gains going to delay, probably, the bringing negative interest rates tional voluntary production Oil also gained on the is due at 2130 GMT. were capped by demand con- trajectory,” Bailey said in an to Britain than fellow BoE rate- cuts, that the market is under- expectations for a drop in US The prospect of increased cerns as coronavirus cases rise online speech to the Scottish setter Silvana Tenreyro who on supplied if anything,” said crude stockpiles. Analysts economic stimulus in the United around the world. Chambers of Commerce. Monday outlined possible ben- Eugen Weinberg of expect crude inventories to fall States lent further support. Chinese authorities intro- However, he added that the efits from such a policy. Commerzbank. by 2.7 million barrels for a fifth President-elect Joe Biden, who duced new curbs in areas sur- basic shape of the recovery “In simple economics and The Saudi cut is part of an straight week of declines. takes office on January 20, has rounding Beijing yesterday and was likely to reflect the tra- maths terms, there is nothing OPEC-led deal in which most The first of this week’s two promised “trillions” in extra Japan is to widen a state of jectory that the BoE outlined to stop it at all. However there producers will hold output supply reports, from the pandemic-relief spending. emergency beyond Tokyo. in a set of forecasts in are a lot of issues with it,” he November. said. Most economists think Brit- Bailey said negative rates ain’s economy is likely to tip - the subject of a feasibility Mercedes and BMW dominance wanes back into recession - shrinking review by the BoE - would in the final quarter of 2020 and complicate banks’ efforts to the first quarter of 2021 - fol- earn a rate of return, poten- BLOOMBERG to be reckoned with in China, where BMW, German carmakers are responding to the lowing a record 25 percent fall tially hurting their lending to Mercedes and Volkswagen’s Audi have long threat by rapidly expanding their electric in output in the first two companies, and that it was not Mercedes-Benz narrowly beat BMW for the controlled more than 60 percent of the luxury offerings. Daimler will introduce the EQA months of lockdown last year. easy to draw a direct parallel title of world’s best-selling luxury-car brand segment. The market was a source of growth compact this month, one of four purely Bailey said the BoE’s “best with similar action in the euro in 2020, a year in which cracks started for the Germans last year, though they still battery-powered vehicles it’s launching guess” was that economic zone. showing in German dominance of the all- gave up some of their share to the electric in 2021. BMW will almost double the output in the last three months He also said the BoE had important China market. upstarts. number of all-electric and plug-in hybrid of 2020 was flat to slightly seen anecdotal evidence of dis- BMW said yesterday worldwide deliv- “The historically untouchable German models it offers to 25 by 2023. down. ruption caused by Britain’s eries for its namesake division fell 7.2 percent brands have begun ceding market share While Mercedes beat BMW in overall He said he no longer departure from the European to 2.03 million, coming within 136,000 units to Tesla and other luxury EV specialists,” vehicle sales, it lagged on electric and plug- thought the unemployment Union at the turn of the year, of Daimler’s main passenger-car line. While Alexander Potter, a Piper Sandler & Co. ins, with the latter selling almost 193,000 rate would peak at around 7-8 but it was too soon to say if this Mercedes outsold its archrival and topped analyst, wrote in a report. He predicts the last year. More than half of Mercedes’s percent, as the BoE forecast would last. the premium auto ranks for a fifth consec- trend will only get worse for BMW, Mer- roughly 160,000 deliveries came in the two months ago, because the “It’s in many ways - in any utive year, electric-vehicle companies led cedes and Audi. “Bottom line: whenever fourth quarter, helping the company meet government had extended its systematic sense - too early to by Tesla made serious inroads in the world’s Tesla opens a store in a new city, the Europe’s CO2 targets. Audi delivered more job protection scheme. judge the impact of it, but the largest market. Germans lose share, and there’s still lots than 47,000 of its battery-powered e-tron But it was probably still impact is both shorter term and Tesla, Nio and Li Auto emerged as forces of headroom for opening new stores.” The SUVs. higher than the latest official longer term,” Bailey said. Google launches Starbucks calls for boosting small businesses, vaccine rollout $3m fund to fight BLOOMBERG well in this space and can help with the COVID-19 vaccine execution.” The company’s investment in Starbucks is calling on President-Elect Joe minority communities will initially focus misinformation Biden, along with other companies, to on 12 US metropolitan areas including invest in businesses owned by people of New Orleans, Minneapolis and Atlanta. REUTERS — CALIFORNIA colour that have been slammed by the For workplace diversity, Starbucks has pandemic, especially in local manufac- set a 2025 target of employing 30 percent The Google News Initiative turing. people of colour at all corporate levels and yesterday launched a global “They need help, and they need help 40 percent at all retail and manufacturing open fund to fight misinfor- in the form of investments,” Starbucks jobs. The company’s workforce is cur- mation about COVID-19 Chief Operating Officer Roz Brewer said rently below the target levels for most of vaccines, worth up to $3m. on Bloomberg Television yesterday as the the positions in those areas. The “COVID-19 Vaccine company announced $100m through Starbucks has been working to expand Counter Misinformation Open 2025 to support small businesses and its diversity initiatives since two Black Fund” aims to support journal- community development projects in men were arrested in a Philadelphia cafe A closed Starbucks cafe is seen in this file photo taken in April 2020 at Dubai istic efforts to effectively fact- diverse communities. “This is not about in 2018, dealing a blow to its long-touted International Airport in Dubai, UAE. check misinformation about the us trying to lift our bottom line. This is commitment to social justice. Biden is set COVID-19 immunisation about the customers that come in to our to release his proposals - the price tag for process, the initiative belonging stores. Our customers are actually small levels of investment and are now most at only small business, but also in speeding which has yet to be unveiled - later this to Alphabet’s Google said in a business owners, too.” Many small busi- risk of failing, Brewer said. But even large, up coronavirus vaccinations. week. The package will feature a range blog post. nesses, which have been weakened across well-funded ones, like Starbucks, are still “I’ll have to be honest with you. I really of support for state and local authorities, “While the COVID-19 info- the US by the nearly yearlong COVID-19 working to return to normalcy, with same- believe that it’s moving a little slow,” she a bump in direct payments to $2,000 and demic has been global in pandemic, have had to rely on the private store sales for the chain down 9 percent said of the vaccine distribution effort. expanded unemployment benefits, along nature, misinformation has also sector while waiting months for stimulus. in the US last quarter. “That is another opportunity for both with funding for vaccine distribution, been used to target specific Businesses in Black and other diverse Brewer said the public and private public and private to come together. There school re-opening, tax credits, rental relief populations,” it added. communities have seen lower historic sectors should come together to help not are some companies that operate very and aid to small businesses. British Airways faces IBM leads in quantum computing, machine learning biggest class-action suit BLOOMBERG compounds and financial service companies to improve Artificial intelligence, quantum encryption. BLOOMBERG with a March 2021 deadline for computers and autonomous With the classical computers, more victims to join. The vehicles are among the fastest- “we’ve made tremendous British Airways faces the largest claimants’ lawyers say that if growing areas of technology, progress, making it more effi- privacy class-action lawsuit in every victim of the cyberattack with American companies often cient and secure,” Guarini said. UK history over its 2018 joined the claim, BA’s overall in the lead, according to a new “But there has not been a revo- customer data breach. potential liability would be study of US patents issued over lution in how the technology More than 16,000 victims around £800m. the past five years. works, for decades and decades. have now joined a case seeking The UK Information Com- International Business Quantum is on a whole new compensation from the airline. missioners’ Office said its inves- Machines received the most level.” Other fast-growing areas They could claim £2,000 tigation into the cyberattack patents in machine learning and include display technology, with ($2,724) each, according to found that “the airline was quantum computers, while Ford Samsung Display in the lead; PGMBM, the law firm repre- processing a significant amount Motor is the most active in areas data transfer technology in com- senting the claimants. of personal data without ade- of vehicle navigation and control puter design led by Intel and Argo AI modified Ford’s Fusion autonomous vehicles sit parked in a “We trust companies like quate security measures in systems, according to the China’s Huawei Technologies, garage at the company’s headquarters in Pittsburgh, Pennsylvania. British Airways with our per- place,” exposing people’s data analysis by Fairview Research’s and plant and seed development sonal information and they have unnecessarily. The fine is the IFI Claims Patent Services. led by Bayer’s Monsanto. a duty to all of their customers ICO’s biggest to date. The US Patent and that imitate how the human person contacts customer In the two areas involving and the public at large to take BA said in an emailed Trademark Office issued 352,013 brain works. Alphabet’s Google service. It’s just one example that autonomous vehicles, Toyota every possible step to keep it statement that it continues “to patents last year, a 1 percent and Microsoft also ranked in the backs up a Brookings Institution Motor and LG Electronics were safe,” Tom Goodhead, a partner vigorously defend the litigation decrease that’s likely attributable top five of those three areas. report that AI is likely to the next highest recipients at PGMBM, said in an email. “In in respect of the claims brought to work-flow changes because “We are focused on areas transform white collar and behind Ford. this instance, they presided over arising out of the 2018 cyber- of the coronavirus pandemic, where we think it will keep IBM higher paid jobs. The second-fastest growth a monumental failure.” IAG SA- attack.” It said it doesn’t “rec- said IFI Claims Chief Executive competitive in the future,” said “It’s never our intent to area, albeit with a small number owned BA revealed in Sep- ognise the damages figures put Mike Baycroft. IBM topped the Kathryn Guarini, chief operating replace the human,” Guarini said. of overall patents, was in the area tember 2018 that a violation of forward, and they have not list of patent recipients for the officer of IBM Research. “We see “Our hope and our intent is that of electrical smoking devices its security systems compro- appeared in the claims .” At a 28th year with 9,130 patents, cloud, AI and quantum as the tri- it makes all of us more efficient with Philip Morris International mised the personal and financial case management hearing in while Samsung Electronics of fecta of technologies for the IT and improves productivity.” as the top recipient over the past details of more than 400,000 November, BA told the court it South Korea was second with industry.” The company, based Quantum computers, which use five years. customers. The carrier was fined was open to the possibility of 6,415 new patents issued last in Armonk, New York, has inte- the movement of subatomic par- “Patents are a significant £20m by the UK data protection entering into settlement discus- year. Of the top-10 fastest grated artificial intelligence into ticles to process data in amounts mechanism for companies to watchdog last year, a fraction of sions with the claimants, growing fields, IBM also was No. all areas of its business, she said. that modern computers can’t develop intellectual property a much heftier fine initially according to Goodhead. 1 in areas of quantum computers, One of its new patents is for ways handle, could create new ways assets,” Baycroft said. “This is planned by the regulator. However, they haven’t yet machine learning and computer AI can understand conversa- for drug and agriculture com- how you compete in the global The suit was filed in 2018, received any proposals, he said. systems using neural networks tional tones, such as when a panies to discover new market.”