QNB board approves QAR2.9bn share buyback program

Image credit: FAYEZ NURELDINE/ Getty Images

Qatar National Bank (QNB Group), the biggest GCC lender by assets, said on Thursday that a new $796.7m (QAR2.9bn) stock repurchase authorisation has been approved by its board of directors.

The Qatari lender said the rationale behind the buyback is driven by its robust financial standing, characterised by significant cash flow and a strong balance sheet, and its growth ambitions.

“QNB’s share buyback is a confidence-building measure that is expected to raise investors’ trust in its robust capital allocation process, improve market liquidity, and enhance returns,” the banking group said in a bourse filing.

The share buyback will be conducted using the open-market repurchase mechanism and will financed by the lender’s retained earnings and excess cash reserves. It is subject to regulatory approvals from the Qatar Central Bank and Qatar Financial Markets Authority.

QNB reported a 7 per cent increase in half-year net profit to QAR8.2bn, citing a “robust and consistent performance” amid a surge in operating income and total assets. Its operating income rose by 9 per cent to reach QAR20.1bn in the six months to June 30.

The banking group had QAR1.3tn in total assets in the January-June period, a 5 per cent increase, driven by growth in loans and advances by 7 per cent to reach QAR879bn.

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