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Qatar banks post record profits in '11

By Satish Kanady DOHA: Despite volatile global equity market and weak investor appetite, Qatar's local banking sector posted record profits in 2011. The net profits of local banking sector surged to 32 percent or QR7bn in 2011 compared to the previous year. The total assets of the banks grew by a record 35 percent to QR302bn.

The record growth rate of the banks were mainly driven by the loan portfolio that witnessed a significant growth rate of 47 percent-an increase of QR 194bn compared to year 2010. The growth in the customer deposit was another key driver for the stellar performance of the banking sector. The customer deposit rate grew by 21 percent to QR200bn.

The year 2011 saw a 34 percent increase in the operational revenue of the local banks. A 37 percent year-on-year growth in the Islamic banking business added the extra muscle to the financial results of the banking sector.

Qatari banks saw 16 percent increase in the net revenues from fees and commission in 2011-a QR1.3bn compared to 2010. The foreign currency transactions of the banks grew by 44 percent during the period fetching an additional QR515m.

The QNB Group net profit for 2011 exceeded QR7.5bn, up by 32 percent compared to 2010. The Group's 2011 results is the highest ever achieved by the group.QNB Group's leading role in the banking sector and the high quality of its assets, along with its capabilities to achieve sustained growth in all activities, were demonstrated clearly in its credit rating, with Standard & Poor's, Fitch and Moody's affirming the Bank's ratings during 2011, which are among the highest in the region. Also Capital Intelligence upgraded the Bank's Financial Strength Rating from A+ to AA-.

Qatar International Islamic Bank's (QIIB) net profit grew 17 percent. The bank's asset is up QR24.3bn. Commercialbank Qatar posted a record net profit of 15 percent. The bank's net operation revenue rose to 12 percent-QR2.86bn. The bank's net interest revenue is up 9 percent, compared to 2010.

Doha Bank, Qatar's third biggest bank in terms of assets, posted 17.7 percent profit- an increase of QR1.24bn. The bank's total assets rose from QR47.2bn in 2010 to QR52.4bn in 2011 representing a growth of 11 percent. Total loans and advances rose from QR26.5bn in 2010 to QR30.7bn in 2011, representing a growth of 15.7 percent.

Al Rayyan Bank posted 16.3 percent growth in its annual net profit. The bank's total assets grew by 59.4 percent compared to 2010, The customers' deposit was up by 17.2 percent. The total equity of shareholders reached QR8.5bn-a 13.3 percent increase.

Al Ahli Bank achieved 7.3 percent growth in its annual net profit. The bank's net operating revenue grew by 7.8 percent. However, the bank's total assets saw a slight drop of 1.3 percent compared to 2010. IBQ reported announced a 25 percent increase in its net profits for 2011. The 25% increase means that IBQ achieved the 2nd highest year- on- year growth in profits among all banks operating in Qatar, the bank claimed here yesterday.

Qatar Islamic Bank's (QIB), the largest Islamic Bank in Qatar, reported a 8 percent rise in the net profit to QR1.37bn in 2011 as investment earnings almost tripled. The bank has proposed a 45 percent cash dividend to shareholders.

Global Investment House, a Kuwaiti investment company forecast that Qatari local banks would achieve a better growth in 2012 despite the slight increase in their Non-Performing Loans. The Investment Company expects that the revenue from interest would grow by 17 percent boosting the banks' net profit. It forecast an 8 percent annual increase in loans and a 28 percent increase in the revenue of fees and commission in 2012.

© The Peninsula 2012