Jana Mohamed

900223579

Financial Report

The Qatar National Bank Al Ahli is a Qatari Multinational commercial bank that is located in
many countries including Egypt. QNB Al Ahli offers a comprehensive range of banking services
to individuals and corporate customers in Egypt. It is known for its strong financial performance
and commitment to delivering quality services. To see if the latter is true, let’s check this bank’s
Annual Financial reports for the year 2022. The financial statements we will be observing have
been prepared for the 12-month period ending December 31,2022.
QNB’s financial statementrs adhere to the International Financial Reporting Standards ( IFRS).
Thus insurting transparency and comparability in its reporting. When analysing QNB's financial
accounts to determine the company's financial health, total liabilities are compared to
shareholder equity. Given that the industry investigated is banking, where the debt to equity ratio
runs from 4.0 to 8.0, QNB has a healthy ratio of liabilities to equity, with total liabilities of
424,210,915,843 EGP and total equity of 52,581,215,720 EGP. This indicates that the company
has a solid financial structure. A larger debt-to-equity ratio, as seen above, shows that the
company is primarily financed by debt rather than equity, as seen by all money due to consumers
via deposits, for example. This indicates a higher level of financial risk, implying that the
corporation's liabilities to creditors outnumber the owners' investment in the company.
Furthermore, QNB uses the straight-line technique of depreciation. This method distributes an
asset's cost evenly over its useful life, allowing for a consistent and transparent way to allocating
depreciation charges in financial statements. For inventoy valuation, the company uses the FIFO
( First-In-First-Out) method. This method presupposes that the oldest inventory items are sold
first, which provides a more accurate picture of the company's present financial status and
profitability. QNB takes on the responsibility of assisting with sustainability and green
initiatives that rely on renewable energy sources. They supported scores of environmentally
beneficial projects aimed at reducing and mitigating the negative effects of carbon emissions
caused by conventional fuels. QNB is also concerned with financial inclusion. In fact, QNB
joined the UNEP FI ( United Nations Environment Programme Finance Initiative) and a
signatory of the PRB ( Principles of Responsible Banking) focusing on risk management,
environmental and socioeconomic risks, financial inclusion, digital transformation, governance,
transparency, and improving the banking industry for economic and societal growth. On the
topic of Sustainable Development, QNB has a significant impact on sustainable development in
Egypt through its CSR (Corporate Social Responsibility) activities. In order to achieve
sustainable development goals they support priority sectors such as education, health, families in
need, youth and women. This support is provided by a variety of financial and non-financial
services. As can be seen from this information, the CSR activities can have various impacts on
Egypt’s sustainable development. For example, it can contribute to economic development and
environmental sustainability as well as social well-being. Based on all this information it is to be
believed that sustainability plays an important role in QNB’s overall strategic plan as it reflects
the company’s commitment to long-term value creation, aligning its business objectives with
societal and environmental well-being.