DOHA: The region’s leading bank QNB has been adjudged as one of the Top Ten Value Creators during the post-2008 financial crisis period. In a Global Ranking, QNB found its place in the top 10 value creators of 25 industrial sectors that delivered growth ranging from 6 percent to 27 percent on average per year.
After analysing the performances of global banks during 2008-2012, QNB was ranked seven in the “Global Top Ten Bank” category, up above the banking majors in countries like Indonesia, India and Malaysia, the Boston Consulting Group’s (BCG) 15th annual Value Creators report revealed.
Group Financiero Inbursa (Mexico), Bank Central Asia (Indonesia) and Bank Mandiri (Indonesia) were the first three banks ranked first, second and third respectively in the top 10 list in the banking sector. QNB was the only bank in the region that got entry to the list.
The big winners in global equity markets since the 2008 financial crisis have been those companies that have successfully fought the economic headwinds and delivered above-average growth.
For instance, the report noted QNB found its place in the list with a 28 percent equity growth and 17.4 percent TSR (Total Shareholder Return).
The 2013 Value Creators rankings are based on an analysis of total shareholder return at 1,616 global companies for the five-year period from 2008 through 2012. In addition to analysing the 1,616-company comprehensive sample, BCG separately evaluated those companies with market valuations of more than $50bn.
“Sustainable earnings growth is the key to long-term value creation in the GCC and globally”, said Markus Massi, Partner and Managing Director and BCG’s Regional Head of the Corporate Development Practice. BCG has recently conducted a survey with institutional investors and investment banks analysing other criteria for their investment decision.
The BCG analysis found the average annual TSR for the 1,616 companies was approximately 4 percent.
The average annual TSR for the 25 industry sectors ranged from 11 percent to 8 percent. The average TSR of the top ten companies in each industry outpaced their industry averages by between 11 percent age points (in insurance) and 32 percentage points (in pharmaceuticals).
Companies from emerging markets continue to dominate the global top ten, with the majority coming from countries such as Brazil, the Philippines, Russia and Thailand.
The BCG report also describes the advantage of a focus on TSR in order to make sure a company delivers growth that actually creates value. The Peninsula
