AT the time when banks and financial sector in other countries are reeling from the adverse impact of COVID-19 outbreak, the banking sector of Qatar has demonstrated resilience. The ‘2020 Qatar Banking Sector Report’ by PwC has highlighted the resilience displayed by Qatari banks despite volatility caused by the pandemic and drop in oil prices in the region.
According to the report, Qatar’s eight listed commercial banks (Ahlibank, Commercial Bank of Qatar, Doha Bank, Al Khaliji, Qatar Islamic Bank, Qatar International Islamic Bank, Qatar National Bank and Masraf Al Rayan), have responded to the measures introduced by QCB and revised their strategies in line with macroeconomic development they have reported a decrease in profitability levels. Noting that, 2020 was underscored by growth of assets and streamlined non-interest costs.
In 2020, the aggregated assets of the eight listed commercial banks regulated by QCB grew by 7.3 percent to reach QR1.74 trillion as compared to 2019, which is reflected in the 7 percent growth of total aggregated loan and advances, which reached QR1.20 trillion. Such increases show that the lending activity remains healthy, driven by diversified sources of funding.
However, profitability was impacted by market volatility, with 2020 aggregate profits of the eight commercial banks falling by 12.43 percent to QR21.59bn as compared to 2019. The reduction can be attributed to several factors, including reduced revenue, primarily driven by a reduction in interest income.
Recently, QNB Group, the largest financial institution in the Middle East and Africa, announced that it has topped the ranking of the Forbes’ ‘Top 50 Banks in the Middle East’ list featuring the region’s banking giants that help drive the region’s economies. QNB Group hit first place with sales of $13.5bn sales and profits totaling $3.3bn. As of June 6, 2021, the banks featured on Forbes Middle East’s list of the ‘Top 50 Banks in The Middle East’ had a total value of $513.6bn and assets worth $2.5 trillion.
QNB was recently named the second most valuable company in the Middle East by Forbes in the list for the “2021 Forbes List of Top 100 Companies in the Arab World”. Qatar Islamic Bank (QIB) was also recognised on a global, regional, and national level at the Global Finance Magazine’s World’s Best Islamic Banks Awards for 2021.
Global Finance’s editorial team awarded QIB with four prestigious accolades including ‘Best Islamic Corporate Bank – Global’ in addition to ‘Best Islamic Bank in the Middle East’ and ‘Best Islamic Bank in Qatar’ for the second consecutive year. The banking sector of Qatar remains strong and ready to capitalise on new technologies and a diversified investor base.
