Listed banks’ net profit rises by 4.7% to QR12.55bn in H1

The net consolidated profit of Qatar’s listed banks climbed by 4.7 percent to reach QR12.55bn for the first half of 2019, compared to QR11.99bn for the same period last year. Qatar National Bank’s (QNB) net profit accounted for 59 percent of the period’s consolidated net profit, followed by Qatar Islamic Bank (QIB), which accounted for 11 percent. The highest profit growth percentage was 10 percent, achieved by Doha Bank, followed by Commercial Bank’s 9.25 percent.

The Group Securities, in its review of the key indicators of the consolidated financial statements of Qatar’s listed banks, noted the average net interest margin (the difference between the interest paid on deposits and debt instruments to interest received on loans, investments and cash instruments adjusted to interest bearing assets) amounted to 2.4 percent for the first half of 2019. QIB recorded the highest by 3.7 percent, while Al Khaliji and Commercial Bank stood at 1.8 percent and 1.9 percent, respectively.

In terms of loans, Qatari banks recorded an average growth rate of 1.3 percent in their loan portfolio during this year’s first half. Qatar International Islamic Bank (QIIB) recorded the highest loan portfolio growth rate at 13 percent, while Al Khaliji Bank’s loan portfolio declined by about 16 percent.

Customer deposits average growth rate stood at 1.4 percent during this first half. Ahli Bank achieved the highest ratio at 18 percent, while customer deposits at Al Khaliji Bank declined by approximately 33 percent.

In terms of the quality of assets, the banking sector’s average level of non-performing debt amounted to about 2.5 percent, the lowest of which was Masraf Al Rayan’s 0.8 percent, while the highest was 5.8 percent at Doha Bank. As for capital adequacy ( The line of defense for depositors’ funds. It measures the bank’s ability to cope with potential losses. High efficiency ratios reflects the strength of the bank’s financial position), the banking sector posted an average of about 17.7 percent, the highest of which was 19.5 percent at Masraf Al Rayan

Source from: The Peninsula