QSE banking, finance sector posts cumulative profit of QR10.8bn in H1

02/08/2017 05:57 AST

The Qatar Stock Exchange’s banks and financial services sector has reported a cumulative net profit of QR10.8bn in the first six months of this year.

QNB, Qatar Islamic Bank and Masraf Al Rayan together accounted for about 82% of the sector’s cumulative net profit, which however slowed down vis-à-vis previous year period, according to the bourse data.

The cumulative net profit of the sector, which has 13 listed constituents, saw a 1.01% year-on-year growth in the first half of this year compared to 3.5% in the corresponding period of 2016.

The index of banks and financial services had fallen 9.13% quarter-to-date ended June 30, 2017 compared to 13.09% decline in the main 20-stock Qatar Index. Five among the 13 constituents had seen improved earnings-per-share during January-June period.

QNB alone had reported net profit of QR6.65bn, which was 62% of the total sectoral profitability, followed by Qatar Islamic Bank QR1.17bn (11%) and Masraf Al Rayan QR1.02bn (9%).

Doha Bank’s net profit stood at QR715.51mn, followed by QIIB (QR465.25mn), Ahli Bank Qatar (QR342.21mn), Al Khaliji (QR319.82mn), Commercial Bank (QR179.59mn), Dlala (QR13.96mn), Qatar Oman Investment (QR10.55mn) and Islamic Holding Group (QR0.77mn). Analysts are of the view that the economic blockade, which started only in the last month of the reporting period, has not been captured in the second-quarter performance.

“Going forward, Qatar financial sector is expected to benefit from the augmented regulatory coordination, increased investment in time-bound infrastructure projects and larger involvement of private sector,” the Qatar Central Bank said in its latest financial stability report.

The US-based Institute of International Finance had said Qatar’s banking industry is well positioned despite the diplomatic stir owing to “limited” credit exposure elsewhere in the Gulf Cooperation Council and the system will be “resilient” as long as the ‘repo’ window remains open.

With liquidity hit by the oil crash in other GCC countries, funding from the region has also remained limited and “we estimate that the GCC funding was about 6% of total liabilities for four domestic banks which account for about 70% of the banking system at the end of 2016”, IIF had said.

Gulf Times