26/09/2017 06:09 AST

Qatar’s third-largest lender, Commercial Bank, is considering borrowing money on the Taiwanese bond market, its group chief executive told Reuters.

The plan to tap Asian markets is because Qatari banks have been locked out of Saudi Arabia, the UAE, Egypt and Bahrain since those Arab countries cut diplomatic and economic ties with Doha in June.

Commercial Bank could tap the Taiwan’s Formosa bond market “in the next few months”, depending on appetite, group chief executive Joseph Abraham told Reuters in Doha. He said that $250mn would be the minimum the bank would be interested in raising and the move would give comfort to investors.

“This, to me, is just showing that we are tapping into the international markets as we did always, so that again gives them comfort the business is running as usual,” Abraham said. Formosa bonds are sold in Taiwan by foreign issuers and denominated in currencies other than the Taiwanese dollar.

The Gulf crisis has caused unease among some international financial institutions. In Europe, most have taken a wait-and-see approach.

“As it continues and they can see Qatar remains resilient and still functioning well, I think they are becoming a little more relaxed,” Abraham said.

Asian lenders, however, have continued to express appetite for Qatari paper, particularly institutions from China, Japan, South Korea and Taiwan, he said.

Qatar’s largest lender, QNB, this month said it had raised $630mn in the Formosa market. However, Abraham said, some other parts of the business are affected by the crisis. Board meetings at United Arab Bank (UAB), an Emirati lender 40% owned by Commercial Bank, are now held by video conference because of travel restrictions imposed by the UAE, Abraham said. He also said the two banks would be unlikely to work together on cross-border loans, as they have in the past, in the current circumstances.

Though Commercial Bank funding costs have risen by about 20 basis points, Abraham said the bank is able to mitigate that by repricing assets and increasing its transaction banking fund base.

Qatar has pumped billions of dollars into local banks since the crisis began in an effort to cushion the sector from withdrawals by the four Arab countries.

“The country has the reserves and capability to manage,” Abraham said, later adding that “the central bank will do what’s required to ensure the banking system remains solid”. Commercial Bank has no plans to change its five-year strategy, unveiled late last year, amid the ongoing Gulf crisis, he said.

The bank has since raised its Common Equity Tier 1 ratio, a key measure of a lender’s ability to absorb losses, to 11.4% from 10%, he said.

Provisioning is expected to normalise at the start of next year and the cost-income ratio has dropped to 38% from 45%, he said, adding that Commercial Bank aims to reduce that to 30%.


Gulf Times

Commercial Bank ‘Save & Win’ gives away over 300 prizes

01/08/2018

Over 300 Commercial Bank customers have already received cash prizes totalling QR1,830,000 with the Bank’s ongoing ‘Save & Win’ campaign. The ‘Save and Win’ campaign rewards savers with 365 cash priz

The Peninsula

Commercial Bank records QR855m net profit for first quarter

19/07/2018

The Commercial Bank, its subsidiaries and associates announced yesterday its financial results for the half year ended 30 June 2018. The Group reported a net profit of QR855m as compared to QR180m fo

The Peninsula

Commercial Bank extends ‘60 seconds’ remittances

05/07/2018

Commercial Bank has extended its best in class ‘60 seconds’ online remittances to Nepal and Pakistan. Customers can now send money home to Nepal and Pakistan in less than a minute using Commercial Ba

The Peninsula

Ticker Price Volume
QNBK 175.00 523,282
APPC 53.10 247,824
SABIC 122.40 2,547,798
ALMARAI 47.85 497,005
BUPA 100.60 44,019
SAICO 12.10 183,602
DARALARKAN 9.44 18,192,290
CBQK Sector Market
P/E
Price/BookValue
Dividend Yield (%)
Relative Strength
  • 1-Month
  • 3-Month
  • 1-Year
Volume Change
  • 10D Avg Vs 90D Avg
Price Vs…
  • 52-w high
  • 50-day moving avg.
  • 200-Day Moving Avg
Ticker Price Change
QNBK 175.00 0.00 (0.00%)
QIBK 136.00 -0.01 (-0.01%)
MARK 37.30 -0.76 (-2.00%)
QIIK 57.60 0.16 (0.27%)
DHBK 23.18 -0.52 (-2.20%)
QNB revises up oil price forecast to $72 for 2018

20/09/2018

QNB has revised up its forecasts for average annual oil prices to $72/b for 2018 from $69/b and to $69/b in 2019 from $66/b. Both demand and supply factors, however, suggest a tilt towards lower pric

The Peninsula

QIB wins two awards at New Age Banking Summit

20/09/2018

Qatar Islamic Bank (QIB), country’s leading Islamic bank, received two awards from New Age Banking & Finance Awards 2018, as part of the seventh edition of New Age Banking Summit Qatar which was supp

The Peninsula

Nakilat showcases its expertise at Gastech 2018

20/09/2018

Nakilat is participating in the Gastech 2018 Exhibition and Conference currently taking place in Barcelona, Spain from 17 to 20 September 2018. One of the largest LNG-centric events globally, Gastech

The Peninsula

Al Hilal Bank successfully closes $500m sukuk

20/09/2018

Al Hilal Bank, rated A2 by Moody’s and A+ by Fitch has successfully closed a $500 million 5-year Senior Sukuk. The transaction, under Al Hilal Bank’s new management team, marks the first Senior Publ

The Gulf Today

Sabic, Clariant sign deal for speciality materials

20/09/2018

Sabic, the world’s third largest diversified petrochemicals company, has signed an agreement with Clariant towards taking steps to establish certain elements of its Specialties business as a stand-al

Trade Arabia