Qatar banks see assets base rise by $25bn in 2014

KPMG report says collective asset base of all listed banks has increased by 12%
Qatar banks see assets base rise by $25bn in 2014
Qatar Islamic Bank (QIB)
By Sarah Townsend
Thu 12 Feb 2015 03:51 PM

The collective asset base of all listed banks in Qatar increased by QR105.8 billion ($25 billion) in 2014, representing a 12 percent increase.

Analysis from the Qatar office of accountancy firm KPMG showed that this was primarily due to a 14 percent increase (QR82.6 billion) in lending portfolios.

This is in turn the result of increased public spending on infrastructure projects as the economy begins to recover, KPMG said.

According to the Gulf Times, Omar Mahmood, partner at KPMG in Qatar and head of the firm’s financial services division in the Middle East and South Asia, said there was a “continued positive story” for listed banks in Qatar during 2014.

He said: “Over the past year, the country has seen robust asset growth, lower impairment charges, stronger asset quality, higher profitability, well controlled cost-to-income ratios, and capital adequacy ratios that remain well above minimum requirements.

“All of these factors have contributed to the current strength of the banking sector.”

The KPMG data also show the deposits of listed Qatari banks were up 11 percent (QR67.5 billion) in 2014 compared with the previous year.

“This will certainly be an area of continued focus for banks in Qatar as they look to reduce the reliance on large one off government deposits,” added Mahmood.

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