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Qatar Tribune
5 hours ago
- Business
- Qatar Tribune
Strong fundamentals bolster stability in Qatar's banking sector: QNBFS
Satyendra Pathak Doha The Qatar banking sector showcased resilience and steady growth during April 2025, reflecting strong fundamentals and proactive financial management, despite minor month-on-month fluctuations, QNB Financial Services (QNBFS) has said in a report published recently. According to a report, total banking assets stood at a robust QR2.072 trillion, representing a commendable year-to-date (YTD) growth of 1.2 percent, underlining the sector's sustained expansion. While the total loan book saw a slight MoM decline of 0.2 percent, it recorded a healthy 2.8 percent growth YTD in 2025. Notably, the report said, private sector loans advanced by 0.4 percent MoM and 1.6 percent YTD, reflecting increased credit demand and positive momentum across keysegments. The general trade and services sectors were the primary drivers of this growth, with general trade loans rising 0.9 percent MoM and services up by 0.5 percent MoM, supported by ongoing diversification of the economy. The real estate segment remained resilient, registering marginal growth, while consumer lending rose by 0.5 percent MoM and a solid 4.2 percent YTD, indicating sustained consumer confidence. Despite a 1.6 percent MoM dip in April, the report said, total deposits maintained a positive trajectory with a 1.5 percent increase YTD in 2025. The private sector deposit base continued to strengthen, up 2 percent YTD, demonstrating continued trust in the local banking system. Within the public sector, semi-government institutions saw a notable 2.9 percent MoM increase in deposits, reflecting renewed institutional confidence. Similarly, government institutions, which account for over half of public sector deposits, registered a slight MoM uptick and a strong 5.1 percent gain YTD. Liquidity in the banking system remained strong, with liquid assets at a healthy 30.2 percent of total assets as of April 2025, unchanged from the previous month. This stability signals banks' strong capability to meet short-term obligations and support economic growth initiatives. Loan provisioning levels increased marginally to 4 percent, up from 3.9 percent in March 2025, indicating the banking sector's continued prudence and readiness to mitigate risks—especially within sectors like contracting and real estate. This proactive stance has contributed to the sector's long-term strength and investor confidence. As deposits saw a steeper drop compared to loans in April, the LDR edged up to 132.8 percent, from 131 percent in March. While higher, the ratio remains within the historical comfort range and underscores banks' continued commitment to supporting credit growth, particularly to productive private sector segments. Overall, the report said, the Qatar banking sector continues to exhibit sound fundamentals and prudent financial stewardship. With expanding private sector lending, stable liquidity, and healthy YTD growth across core metrics, the industry remains well-positioned to support Qatar's economic ambitions in 2025 and beyond.
Zawya
08-05-2025
- Business
- Zawya
Qatar banks' total assets grew 0.6% to reach $569bln in March: QNBFS
Qatar banking sector total assets grew by 0.6% during March to reach QR2.074tn, driven by a rise in domestic assets, according to QNB Financial Services. Qatar banking sector total assets grew by 0.6% during March to reach QR2.074tn, driven by a rise in domestic assets, according to QNB Financial Services. Total assets moved up by 1.3% in 2025, compared to a growth of 3.9% in 2024. Assets grew by an average 5.7% between 2020 and 2024. Liquid assets to total assets edged slightly lower to 30.2% in March, compared to 30.4% in February, QNBFS said in its latest 'Qatar Monthly Key Banking Indicators'. According to QNBFS, Qatar banking sector loan book increased by 0.6% MoM (up 3.0% in 2025), while deposits went up by 0.2% MoM (up 3.2% in 2025) in March this year. With higher loans increase over deposits during March, the Loans to Deposits Ratio (LDR) moved up to 131.0%, compared to 130.5% in February. Overall loan book went up by 0.6% during March to reach QR1,387.7bn. Loans gain in March was mainly due to an increase by 1.0% in public sector loans and a rise by 0.3% in private sector loans. Private and public sectors were the main growth drivers YoY with the government taking QR21.1bn, real estate taking QR18.4bn, and government institutions taking QR16.5bn, QNBFS noted. Loans went up by 3.0% in 2025, compared to a growth of 4.6% in 2024. Loans grew by an average 5.4% over the 2020-2024 period. Outside Qatar loans increased by 0.9% MoM (+0.9% in 2025) in March 2025. Loan provisions to gross loans moved up to 3.9% in March, compared to 3.8% in February. Deposits edged up by 0.2% during March to reach QR1,059.5bn. Deposits uptick in March was mainly due to a gain by 0.7% in public sector deposits and a gain by 0.5% in non-resident deposits. Non-Resident, private sector and public sector deposits were the main growth drivers YoY with the government contributing QR20.9bn, non-residents providing QR12.5bn and personal (retail) adding QR16.8bn, the report noted. Deposits rose 3.2% in 2025, compared to an increase by 4.1% in 2024. Deposits grew by an average 3.9% over the 2020-2024 period. An analyst told Gulf Times, 'Banking sector indicators continue to show good promise during March with the further gains in total assets during the month. Total assets increase was mainly driven higher by a QR7.4bn increase in domestic credit. 'The overall banks' credit facilities was pushed higher noticeably by the government (overdrafts and other loans) as it continues to utilise this flexibility in funding its spending needs. Private sector loan gains were also coming in from increasing private consumption, contractors and the pick-up in the services sector'. © Gulf Times Newspaper 2022 Provided by SyndiGate Media Inc. ( Pratap John
Qatar Tribune
07-05-2025
- Business
- Qatar Tribune
Total assets of Qatar's banking sector up 0.6% to QR2.074 trn in March
Satyendra Pathak Doha The monthly report on Qatar's banking sector released by QNB Financial Services (QNBFS) on Wednesday has highlighted that the country's banking sector continued its upward trajectory in March 2025, with a steady rise in total assets, loans, and deposits. The report revealed that total assets of Qatar's banking sector increased by 0.6 percent month-on-month (MoM) in March 2025, reaching QR2.074 trillion. On a year-to-date (YTD) basis, this marked a 1.3 percent growth, indicating the resilience and ongoing expansion of the sector despite global financial uncertainties. The loan book of Qatar's banks also saw a 0.6 percent increase MoM, registering a 3 percent rise in 2025. In comparison, total deposits edged up by 0.2 percent during the same month and rose by 3.2 percent so far this year. As a result of stronger growth in loans compared to deposits, the loan-to-deposit ratio (LDR) rose to 131 percent in March, up from 130.5 percent in February 2025. This reflects tightening liquidity conditions and sustained credit demand across key economic segments. The overall loan book expansion in March was primarily driven by increased lending to both the public and private sectors. Public sector loans grew by 1.0 percent MoM and recorded a robust 7.9 percent increase YTD. Within this category, loans to the government segment—accounting for approximately 32 percent of total public sector loans—surged by 3.7 percent MoM, marking a remarkable 22.7 percent growth in 2025. Meanwhile, the report said, government institutions, which make up about 63 percent of public sector loans, saw a marginal increase of 0.1 percent MoM and 2.4 percent YTD. However, loans to semi-government institutions declined by 4.6 percent MoM, leading to a 3.3 percent drop for the year. Private sector loans also increased by 0.3 percent MoM in March and grew by 1.1 percent in 2025. The key drivers of private sector loan growth included the consumption and others, contractors, and services segments. Loans under consumption and others, which contribute roughly 20 percent to the private sector loan portfolio, grew by 0.5 percent MoM, although they registered a slight decline of 0.2 percent on a YTD basis. The contractors segment saw a notable increase of 2.2 percent MoM and has grown by 7.8 percent in 2025. The services sector, which constitutes about 32 percent of private sector loans, posted a modest 0.2 percent MoM increase, resulting in a 0.8 percent gain for the year. Additionally, loans to the real estate and general trade sectors both increased by 0.3 percent MoM and rose 1.5 percent YTD. Lending activities outside Qatar also saw an uptick, with loans increasing by 0.9 percent MoM and maintaining a 0.9 percent growth YTD as of March 2025, indicating cautious but positive international lending exposure by Qatari banks. On the deposits side, the QNBFS report noted that public sector deposits climbed 0.7 percent MoM and recorded a 5.3 percent increase YTD. The government segment, representing approximately 36 percent of public sector deposits, contributed significantly to this growth with a 2.4 percent MoM rise and a 9.9 percent YTD increase. Government institutions, accounting for around 53 percent of these deposits, added 1.5 percent MoM and 4.9 percent over the year. In contrast, semi-government institutions experienced a sharp decline of 7.8 percent MoM and a 5.4 percent fallin 2025. Non-resident deposits rose by 0.5 percent MoM and were up by 1.2 percent for the year. Their share of total deposits increased to 19.1 percent as of March 2025, up from 18.2 percent at the end of 2023, highlighting the continued reliance of Qatari banks on external funding sources. Private sector deposits showed mixed performance, dipping slightly by 0.2 percent MoM but still recording a 2.4 percent rise so far this year. Within this category, deposits from companies and institutions dropped by 1.7 percent MoM but rose 0.7 percent YTD. On the other hand, consumer deposits grew by 1.0 percent MoM, bringing their YTD gain to 3.7 percent, reflecting stable individual saving behavior. In terms of asset quality, the report pointed out that loan provisions to gross loans edged up to 3.9 percent in March 2025, compared to 3.8 percent in February. This figure has risen from 2.3 percent in 2019 to 3.9 percent by the end of March 2025, as banks continue to set aside provisions for Stage 2 and Stage 3 loans, particularly in the contracting and real estate sectors where asset quality risks remain elevated. Despite these challenges, liquidity in the sector remains strong. The ratio of liquid assets to total assets stood at 30.2 percent in March, slightly down from 30.4 percent in February, but still reflective of a healthy liquidity buffer across Qatar's banking system. The QNBFS report concludes that the overall outlook for Qatar's banking sector remains stable, backed by robust public sector spending, manageable credit risk exposure, and healthy liquidity positions.
Qatar Tribune
04-05-2025
- Business
- Qatar Tribune
Nakilat outlook remains bright on strong Q1 results: QNBFS
Satyendra Pathak Doha Qatar Gas Transport Company Limited (Nakilat, ticker: QGTS) reported a robust first quarter for 2025, surpassing market expectations across several financial and operational indicators, QNB Financial Services (QNBFS) said in a report released recently. According to the report, the results were driven by stronger-than-expected performance from wholly owned vessels, improved margins, and lower finance costs, which more than compensated for a minor shortfall in joint venture income. These results reaffirm Nakilat's reputation as a key growth story in Qatar's LNG value chain. Nakilat's net profit for the first quarter of 2025 rose 3.2 percent year-on-year and 19.7 percent quarter-on-quarter to QR433.2 million, translating to earnings per share of QR0.078. This figure outperformed QNBFS's estimate of QR403.3 million by 7.4 percent. Revenue from wholly owned ships came in at QR908.6 million, modestly above the forecast, while EBITDA reached QR721.3 million—4 percent higher than expectations—supported by lower cash operating costs and improved gross margins. General and administrative expenses were significantly lower than expected at QR18.8 million, aided by efficient expense management and timing-related factors. Depreciation costs of QR212.1 million were in line with estimates, with QNBFS reminding investors that Nakilat's vessels are currently in a dry-docking cycle that began in 2023. Importantly, long-term time-charter agreements absorb dry-dock days, ensuring stable revenue generation. Although joint venture income of QR156.6 million fell short of expectations due to softer spot markets, QNBFS notes that Nakilat's limited exposure to spot rates offers a degree of protection. Moreover, management anticipates a rebound in the shipyard segment toward the end of 2025, with stronger momentum projected in 2026 and beyond. Finance costs decreased to QR258 million, 4.8 percent below forecasts, owing to loan repayments and refinancing at favorable rates. Meanwhile, interest and dividend income outperformed expectations, though lower year-on-year due to capital reallocation toward the fleet expansion program. QNBFS highlights Nakilat's central role in Qatar's LNG expansion strategy. The company has already secured contracts for 25 new conventional LNG carriers and 9 QC-Max vessels—comprising 27 percent of QatarEnergy's total fleet expansion. This development, according to QNBFS, supports a potential 60 percent uplift in Nakilat's earnings from 2026 to 2031. Deliveries and capital spending will accelerate from 2026, peaking in 2027, and continue through 2031. QNBFS plans to update its earnings model once further details on capital expenditures, charter rates, and financing structure become available. QNBFS reiterates its outperform rating on Nakilat, with a target price of QR5.600. At current valuation levels, QGTS represents one of the most attractive long-term investment opportunities in Qatar's energy sector. Its stable, long-term cash flows, strategic LNG exposure, and disciplined capital management make it a compelling choice for equity investors. QNBFS cautions that execution risks remain given the scale of the fleet expansion. However, Nakilat's operational track record and strong alignment with state-owned QatarEnergy reduce this risk significantly. The company's robust financial footing and long-term charter arrangements offer further insulation from market volatility.
Zawya
16-04-2025
- Business
- Zawya
Qatar banking sector assets reach $565bln in February 2025
Doha, Qatar: Qatar's banking sector continued its steady performance in February 2025, with total assets rising by 1.1 percent month-on-month (MoM), reaching QR2.062 trillion, stated QNB Financial Services (QNBFS) in its latest report. On a year-to-date basis, total assets have grown by 0.7 percent, reflecting a solid start to the year for the financial sector. The report noted that total deposits climbed by 1.6 percent MoM in February (up 2.9 percent YTD), outpacing loan growth of 0.5 percent MoM (up 2.4 percent YTD). As a result, the sector's loan-to-deposit ratio (LDR) declined to 130.5 percent, down from 132 percent in January, indicating improved liquidity. Public sector deposits saw strong growth, rising 3.6 percent MoM (up 4.6 percent YTD), led by an 8 percent MoM increase in government deposits and a 4.8 percent MoM rise in deposits from government institutions. However, semi-government institution deposits declined 11.0% MoM despite a modest 2.6 percent gain for the year. Private sector deposits also trended positively, increasing by 1.1 percent MoM (up 2.6 percent YTD), with consumer deposits up 1.4 percent and corporate deposits rising by 0.8% during the month. In contrast, non-resident deposits dipped slightly by 0.6 percent MoM, though they have increased 0.7 percent YTD. As of February, non-resident deposits accounted for 19.1 percent of total deposits, up from 18.2 percent at the end of 2023—highlighting continued reliance on external funding. On the other hand, loan growth in February was primarily driven by the public sector, with loans rising 1.4 percent MoM (up 6.8 percent YTD). Government borrowing surged by 4.4 percent MoM (up 18.3 percent YTD), while semi-government institutions and government institutions posted more modest gains. The private sector loan book edged up by 0.2 percent MoM (up 0.8 percent YTD), supported by growth in the contracting segment (+2.5 percent) and real estate (+0.2 percent). Meanwhile, general trade loans declined slightly (-0.2 percent MoM), and consumption, services, and other sectors recorded marginal gains. Outside Qatar, loans increased by 0.2 percent MoM, showing a marginal growth of 0.02 percent for the year. The report also mentions that loan provisions remained stable at 3.8 percent in February, consistent with January levels. Provisioning has steadily increased from 2.3 percent in 2019 to 3.9 percent in 2024, reflecting caution around Stage 2 and 3 loans—particularly in the contracting and real estate sectors. Additionally, liquidity also improved, with liquid assets to total assets rising to 30.4% in February, up from 30.2% in January, signaling a robust liquidity position for the sector. © Dar Al Sharq Press, Printing and Distribution. All Rights Reserved. Provided by SyndiGate Media Inc. ( The Peninsula Newspaper
