Shuaa sees QNB as long-term investment

zoom

MONEY MATTERS: Shuaa said QNB's customer deposits fell 12 percent year-to-date. (Getty Images - for illustrative purposes only)

Shuaa Capital said Qatar National Bank (QNB) remained one of its preferred top-down plays in Qatar, making it a relatively low-risk and long-term investment despite a cautious outlook for the short term.

"Although QNB's first-quarter performance reflected a healthy balance sheet with limited market exposure, it is clear that the bank's profitability was affected by the slowdown in its core banking business," Shuaa said in a note to clients.

Qatar's largest lender on Wednesday posted a first-quarter net profit of 1.0 billion riyals ($275m), up 10 percent from a year ago, as it had effectively managed risk.

The bank's net operating income rose 9 percent to 1.3 billion riyals on higher net interest income and income from financing activities.

The first-quarter results revealed a flat operating performance while the bottom line benefited from a notably lower cost of risk compared to the previous quarter, Shuaa said.

Shuaa said QNB's customer deposits fell 12 percent year-to-date to 91.9 billion riyals, while total loans fell 18 percent sequentially to 81.6 billion riyals.

"At these levels, QNB's loans to deposits ratio improved to 89 percent from 96 percent in the previous quarter," the investment bank said.

QNB operates in 22 countries besides Qatar, spanning Iran to Singapore, either through branches or stakes in banks. (Reuters)

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM