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 copelling 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
 Jul 1 2016 - Qatar, Indonesia join forces in gas searchMENAFN
(MENAFN) Indonesia is seeking partnership with Qatari top firms such as Qatar Petroleum or RasGas for gas exploration on its land, based on recent reports.Indonesia already sees and realizes the ...

 Jul 1 2016 - UAE seeks for India to be top business partnerMENAFN
(MENAFN) India is forecasted to surpass Japan as the top export destination of the UAE by the year 2030, according to the latest reports.Japan and India stood at 11 percent and 6 percent respectively ...

 Jul 1 2016 - Omani Port of Salalah initiates new crucial line servicesMENAFN
(MENAFN) Oman's Port of Salalah, a key Arab Gulf region gateway port for the Arabian Sea, is going to have French-based CMA CGM, the world's third-largest container shipping line adding two new ...

 Jul 1 2016 - Kuwait oil price up 54 cents to USD44.66 pbKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) KUWAIT, July 1 (KUNA) -- The price of Kuwait oil went up by 54 cents to reach USD 44.66 per barrel Thursday after trading at USD 44.12 pb the day before, said ...

 Jul 1 2016 - Sabbiyah shrimp project to achieve production boom - studyKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) KUWAIT, July 1 (KUNA) -- The proposed Sabbiyah shrimp farming project expected to be a leading one is designed to achieve a production boom to meet the rising ...

 Jul 1 2016 - Kuwait- No makeshift eid prayer locations -- ministryKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) KUWAIT, July 1 (KUNA) -- Eid Al-Fitr prayers will be confined to mosques and no makeshift prayer places will be set up, the Ministry of Awqaf and Islamic Affairs ...

 Jul 1 2016 - Kuwait- His Highness the Amir congratulates Rwanda on nat'l dayKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) KUWAIT, July 1 (KUNA) -- His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah sent a cable of congratulations Friday to Rwanda''s President Paul Kagame ...

 Jul 1 2016 - Kuwait- His Highness the Amir congratulatesc Canada on nat'l dayKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) KUWAIT, July 1 (KUNA) -- His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah sent a cable of congratulations Friday to General Governor of Canada David ...

 Jul 1 2016 - Kuwait- His Highness the Amir congratulates Burundi on nat'l dayKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) KUWAIT, July 1 (KUNA) -- His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah sent a cable of congratulations Friday to Burundi''s President Pierre ...

 Jul 1 2016 - Saudi Arabia condemns Bahrain blastKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) JEDDAH, July 1 (KUNA) -- Saudi Arabia has condemned "the terrorist act" that happened in eastern Bahrain killing a woman and injuring her children. The official ...

more...


 





Google

Advertisement

 
 

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