Tribune News Network
doha
The Board of Directors of QNB Group, the largest financial institution in the Middle East and Africa, has approved a share buyback programme valued at up to QR2.9 billion on the Qatar Stock Exchange. This strategic move is part of QNB Group’s ongoing efforts to optimise its capital distribution and allocation policy.
The buyback, involving QNB shares, will commence following regulatory approvals from the Qatar Central Bank (QCB) and the Qatar Financial Markets Authority (QFMA).
The decision to repurchase QNB’s shares was made after a thorough evaluation of several critical factors, including current and future shareholder expectations, the strength of QNB Group’s financial position, and its growth strategy.
QNB’s strong return on equity, high-quality earnings, favourable financial ratios, and continued investor confidence were key considerations in the board’s decision-makingprocess.
QNB’s share buyback is intended to serve as a confidence-building measure, demonstrating the Group’s commitment to effective capital allocation and enhancing shareholder value.
The initiative is expected to improve market liquidity and provide a positive signal to investors regarding QNB’s robust financial health and disciplined capital management approach.
QNB Group plans to finance the share buyback using its retained earnings and surplus liquid funds, reflecting its strong liquidity position. Despite the repurchase, QNB will maintain capital buffers that exceed regulatory minimums set by QCB and Basel III standards.
The Group does not foresee any material impact on its capital adequacy or other financial ratios as a result of the buyback.
The share repurchase will be conducted through an Open-Market Repurchase (OMR) mechanism, in line with QFMA regulations. This approach allows QNB to buy back shares directly from the open market, supporting enhanced market liquidity and helping stabilise share prices.
Further details about the buyback process, including the timeline for regulatory approvals and the specific mechanics of the buyback, will be disclosed in due course. QNB Group remains committed to transparency and will ensure that all necessary information is made available to stakeholders as the process unfolds.
QNB Group operates in over 28 countries across three continents, with a network of approximately 900 locations, 5,000 ATMs, and a workforce of 30,000 employees. As a leading financial institution, QNB continues to strengthen its market position through disciplined financial management, strategic investments, and a commitment to delivering superior returns to its shareholders.
The share buyback program reinforces QNB’s confidence in its future growth prospects and underscores its commitment to maintaining strong relationships with investors while supporting the Group’s overall strategic objectives.
