The Board of Directors of Qatar National Bank (QNB) Group approved, during its meeting today, a decision to buy back the Bank’s shares (trading code: QNBK) worth up to QAR 2.9 billion, on the Qatar Stock Exchange, as part of the development of QNB Group’s capital distribution and allocation policy.
A statement by QNB Group stated that, after obtaining the necessary regulatory approvals from the Qatar Central Bank and the Qatar Financial Markets Authority, the shares will be repurchased in accordance with the rules of Qatar Financial Markets Authority Decisions No. 3 and No. 4 of 2024.
The statement indicated that the decision to buy back shares came after careful consideration of several factors, the most important of which are the current and future expectations of shareholders, the strength of QNB Group’s financial position and growth strategy, the strong return on equity, high-quality earnings, financial ratios related to shareholders’ equity and the continued confidence of investors.
The share buyback aims to strengthen confidence between the bank and shareholders regarding the capital distribution process, and also aims to improve the liquidity of the bank’s shares in the market and enhance the bank’s financial ratios.
According to the statement, QNB Group intends to finance the share buyback from its retained earnings and excess liquid funds available to it. Despite the share buyback, the Group confirmed that it will continue to maintain strong capital reserves above the minimum regulatory requirements of the Qatar Central Bank and the Basel III Committee, and no material impact is expected on capital or related financial ratios.
The statement pointed out that the share buyback program will be implemented using the open market buyback mechanism in accordance with the applicable rules and regulations of the Qatar Financial Markets Authority.
