QNB Group has secured all necessary regulatory approvals from the Qatar Central Bank (QCB) and the Qatar Financial Markets Authority (QFMA) to proceed with a significant share buyback initiative. The move, which will involve the repurchase of shares worth up to QAR2.9 billion, has been authorised under Article 10 of the bank’s Articles of Association and follows a decision by QNB’s Board of Directors on 11 September 2024.
QNB Group, one of the largest financial institutions in the Middle East and Africa, will carry out the buyback in line with QFMA’s Decision Numbers 3 and 4 of 2024. The repurchase will be funded entirely from the bank’s existing cash reserves, according to a company spokesperson. The process will be conducted using an Open-Market Repurchase (OMR) mechanism, ensuring it complies with QFMA’s established rules and regulations.
The share repurchase will commence following the publication of QNB Group’s interim financial results for the nine-month period ending 30 September 2024. The start of the buyback will also be subject to prevailing market conditions at the time.
QNB’s decision to repurchase its shares reflects a carefully considered strategy, designed to align with both current and future shareholder expectations. It also takes into account the bank’s strong financial position, growth outlook, and healthy return on equity. The initiative is also underpinned by the bank’s continued profitability and favourable financial ratios, which have been bolstered by high-quality earnings.
James Hennigan, Managing Director at QNB Group, noted: “The decision to conduct a share buyback is driven by the confidence we have in our financial strength, as well as a commitment to delivering value to our shareholders. With robust capital buffers well above regulatory minimums, we do not expect any material impact on our capital ratios or liquidity as a result of this repurchase.”
QNB Group also emphasised that the move has been made with the full support of the investor community, citing the bank’s strong standing in the market. The group reassured stakeholders that despite the significant scale of the buyback, it would continue to exceed regulatory capital requirements set by both QCB and the Basel III framework.
QNB Group’s presence spans 28 countries across three continents, and it operates through approximately 900 locations, supported by 30,000 employees. The bank manages an extensive network of over 5,000 ATMs, offering a broad range of banking services to its diverse client base.
The buyback represents another step in QNB’s ongoing efforts to maintain its leadership position in the regional banking sector while continuing to support its global expansion strategy. Investors will be closely watching for the publication of the interim financial statements in the coming weeks, which will offer further insight into the bank’s current financial performance.
