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 recognised by Visa for leading eCommerce growth in Qatar

10/05/2018

Commercial Bank has received an award from Visa, the world’s leader in digital payments, for highest eCommerce growth in Qatar. The award recognises excellence among Visa card issuers in the market t

The Peninsula

Commercial Bank wins ‘best remittance service award’

03/05/2018

Commercial Bank was the first bank in Qatar to introduce “60 seconds” online remittances to bank accounts in India last year, and the initiative has since been extended to the Philippines and Sri Lan

The Peninsula

Commercial Bank initiative to help startups of Qatari entrepreneurs

29/04/2018

Commercial Bank is supporting Qatari entrepreneurs with a new initiative that puts their startup businesses on the spotlight.

Commercial Bank is providing space at Commercial Bank Plaza bui

Gulf Times

Ticker Price Volume
QNBK 158.99 1,133,485
SABIC 117.00 3,104,543
RIBL 14.96 686,890
STC 83.30 232,905
ENAYA 11.06 108,629
BURUJ 29.78 452,721
WALAA 31.26 149,587
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 158.99 5.99 (3.91%)
QIBK 113.50 2.50 (2.25%)
MARK 33.43 0.04 (0.11%)
DHBK 26.60 0.20 (0.75%)
QIIK 53.39 -0.01 (-0.02%)
Julphar continuing to strengthen financial position

21/05/2018

JULPHAR, one of the largest pharmaceutical manufacturers in the Middle East and Africa, announced its first quarter 2018 financial results. The Ras Al Khaima company reported first quarter 2018 sales

Saudi Gazette

Alinma named fastest growing bank for sixth time in 10 years

21/05/2018

FOR the sixth time in its 10-year history, Alinma Bank has been named the fastest growing bank in Saudi Arabia. This most recent accolade was bestowed upon the bank by Banker Middle East magazine at

Saudi Gazette

Union Properties gets shareholders' approval for Dh1bn sukuk

21/05/2018

Union Properties shareholders approved the developer's plans to shore up its finances through the issuance of up to Dh1 billion in sukuk and increase the company’s foreign ownership limit, as the fir

The National

Ezdan Holding subsidiaries get ISO 9001:2015 certification

21/05/2018

Ezdan Real Estate and Ezdan Mall Companies, the two subsidiaries of Ezdan Holding Group, have been awarded ISO 9001:2015 certification. The internationally recognised certification is in different do

Gulf Times

Bank Sohar appoints Ahmed Al Musalmi as CEO

21/05/2018

Bank Sohar announced the appointment of Ahmed Al Musalmi as the new Chief Executive Officer with effect from May 20, 2018 taking over from Sasi Kumar who is leaving the bank after having served over

Times of Oman