Qatar First Bank L.L.C. (Public) “QFB”, held its adjourned Extraordinary General Meeting (EGM) yesterday to discuss and approve few special resolutions at QFB Lounge premises in Doha – Qatar with the attendance of QFB’s Board of Directors, chaired by Chairman Sheikh Faisal bin Thani Al Thani, along with shareholders and attendees of the EGM. Upon announcing the quorum by external auditors, the attendees discussed and approved, special matters related to capital reduction, changes in articles of association and raising credit limits for related parties’ transactions.
HE Sheikh. Faisal bin Thani Al-Thani, QFB Chairman, commented:
“It was not an easy resolution for the BoD to call shareholders today to approve a capital reduction by 65%. However, we made this resolution to amortize previously accumulated losses to allow us move forward to serve the best interests of QFB shareholders.”
He then added:
“I assure you that the current BoD shall exert its best efforts to put QFB on the right route of growth and profitability. Over the next few months, we shall reveal new products and restructuring exercise that are initial steps to put QFB on the right track again.”
Bank’s EGM through shareholders’ approval, adopted a special resolution to approve QFB’s Board of Directors share capital reduction recommendation in accordance with regulatory requirements by the Qatar Financial Markets Authority (QFMA), QFC rules and others applicable laws. The Bank will now seek to fulfill the necessary regulatory and legal arrangements to effect the capital reduction recommendation.
The process will essentially be a balance sheet transaction effected by means of an accounting adjustment all within the “Total Equity” section where the net Equity before and after the proposed Capital Reduction will remain unchanged. The transaction will have no impact on the cash position or financial liquidity of the Bank. Another special resolution was passed approving certain alterations to the articles of association in accordance with the new corporate governance regulations issued by QFMA.
Mr. Ali Mohammed Al-Obaidli, QFB CEO, also commented:
“We will proceed with the proposed capital reduction plan that will play a significant role in our growth. Our outlook is very firm and optimistic. The launch of revised strategy and appointment of new BoD and management team will definitely boost our performance and accelerate momentum of coming back into the green.”
Key focus areas of the new strategy will include organic growth of the bank’s customer base of high net worth Individuals, institutional investors and government related entities. Furthermore, the team directly acquired several yielding real estate properties in the US and UK while structuring several capital protected structured products.
To achieve sustainable business growth and to turn around financial and business performance, the bank board have decided in favor of adopting a timely strategy that focuses on shifting the bank’s operating model to fee income on investment products. QFB shall also embark into a restructuring exercise to reduce its operational expenditures; further details shall be announced soon in line with QFB newly elected BoD’s endeavors to serve the best interests of QFB shareholders.