Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Qatari banks focus on debt securities  Join our daily free Newsletter

MENAFN - The Peninsula - 30/01/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - The Peninsula) Qatari banks are increasingly reducing their reliance on the short-term interbank funds and focusing more on issuance of debt securities. Investment analysts from two separate regional banks noted yesterday that Qatari banks are focusing more on bonds and will continue to do so in 2014 to lower funding costs



A funding breakdown of Qatari banks for the past five years shows a jump in issuance of debt securities. NBK's Qatar Chart Book for January 2014 reveals that of the total funding of Qatari Banks (as of November 2013), debt issuance accounted for six percent. This is compared to four percent and three percent in 2012 and 2011 respectively. Debt issuance accounted for just one percent of the bank's total funding five years ago



As domestic debt issuance proceeded apace, government debt reached 36 percent of the GDP in 2013, according to the chart



In a note sent to The Peninsula yesterday, the SICO Investment Bank analyst Chiradeep Ghosh said: "Qatari banks are using the low interest rate environment to issue long-tenured bonds to reduce the asset-liability duration mismatch on their books arising from funding long-term projects. The banks will continue to issue long-term debt in 2014 to lower funding costs, along with increasing the duration of liabilities.



According to Ghosh Qatari banks' story will be more compelling in 2014 than the last year. Banks are shifting their lending portfolios from real estate to construction, which is backed by cash flows from public sector entities. Although risks still persist, they have relatively moderated as we do not expect these quasi government entities to default in the current economic environment. The SICO analyst is also foresees a moderate, but steady, real estate price rises in Qatar



We are seeing increasing evidence of major Qatari banks focusing on different segments of the market. While some banks focus on lending to the government or quasi-government entities, other banks are focusing on periphery/large contractors. Another group of banks, because of their relatively lower equity book, continues to focus on SMEs and retail business. "This is in our opinion is positive for banks, due to limited competition in each segment", he said



The SICO analyst noted that its earlier concerns related to the Qatari banks' exposure to real estate portfolios have been partially waned, with banks lowering their lending to the real estate sector, and replacing it with public sector lending and to contractors who are working on Government-backed projects



The SICO is bullish on Qatari banks for 2014. "We expect strong domestic balance sheet growth to continue in 2014, with the aggregate lending book growing at 13-14 percen

 


The Peninsula




  MENA News Headlines
 Jan 27 2015 - More Emirati students join Qasr Al Hosn Festival AmbassadorsEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) More than 250 university students from across the Emirate of Abu Dhabi will be selected to act as the Qasr Al Hosn Festival Ambassadors during this year's ...

 Jan 27 2015 - DXB takes over top spot for international passenger trafficEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) Dubai Airports today released its year-end traffic report which confirm that Dubai International Airport, DXB, has secured its position as the number one airport ...

 Jan 27 2015 - New Abra services in Abu DhabiEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) A new water taxi service using a traditional wooden abra has been launched to connect two of Abu Dhabi's prime waterfront tourist destinations. Passengers can ...

 Jan 27 2015 - EGA Golfers to rub shoulders with world's best at omega Dubai Desert Classic Pro-AmEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) A select group of golfing guests of Emirates Global Aluminium, EGA, will enjoy one of the most memorable playing experiences of their lives when they compete in ...

 Jan 27 2015 - OPEC daily basket price for Monday announcedEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) The price of OPEC basket of twelve crudes stood at US $42.90 a barrel on Monday, compared with US $43.69 the previous Friday, according to OPEC Secretariat ...

 Jan 27 2015 - Over one million Umrah performers cross King Abdulaziz International Airport within 45 daysEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) JEDDAH, 27th January, 2015 (WAM) - The number of Umrah performers arriving and departing from King Abdulaziz International Airport in Jeddah since the start of ...

 Jan 27 2015 - UNDP issues new development report spotlighting string of successes in Asia-Pacific regionEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) The United Nations main development programme has spotlighted its string of successes in 36 countries and territories in the Asia and Pacific region in the areas ...

 Jan 27 2015 - ADES 2015 to run from 18th to 21st March at ADNECEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) DOME Exhibitions today announced the third edition of Abu Dhabi Electronics Shopper, ADES 2015, the largest consumer electronics exhibition in Abu Dhabi, will ...

 Jan 27 2015 - GCC Secretary-General meets with UN officialEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) Dr. Abdullatif bin Rashid Al-Zayani, GCC Secretary-General has met with Ashok Nigam, UN Resident Coordinator and Resident Representative of the United Nations ...

 Jan 27 2015 - Saudi- Dawn of a new era under King SalmanArab News
(MENAFN - Arab News) A new era dawned in Saudi Arabia on Monday under the leadership of Custodian of the Two Holy Mosques King Salman as citizens across the country expressed their confidence in the ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help