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
 Aug 31 2015 - Alleged Ansar Beit Al-Maqdis member killed in CairoDaily News Egypt
(MENAFN - Daily News Egypt) student, named as Ahmed Abdel Hakim, was killed Saturday on suspicion of being a member of the extremist group Ansar Beit Al-Maqdis, the Ministry of Interior ...

 Aug 31 2015 - Egypt- To those who will not read these wordsDaily News Egypt
(MENAFN - Daily News Egypt) I've often stared at a blank page recently, just as blankly as the uniform whiteness looked back at me, as I thought how to smear it with something meaningful. My words ...

 Aug 31 2015 - Egypt- Implementation of 3 roads in national plan progressesDaily News Egypt
(MENAFN - Daily News Egypt) The implementation rate of the three EGP 3.5bn roads that are under construction has increased, as part of the national plan for developing the road network, Minister of ...

 Aug 31 2015 - Egypt- Eni invests $7bn to develop Shorouk in 3 yearsDaily News Egypt
(MENAFN - Daily News Egypt) Italian oil company Eni aims to invest around $7bn during three years to excavate the privilege area of Shorouk in the deep waters of the Mediterranean Sea.The petroleum ...

 Aug 31 2015 - Jordan- 8,000 Syrian refugee students in Mafraq schoolsJordan News Agency
(MENAFN - Jordan News Agency) Some 8,000 new Syrian refugee pupils are enrolled in government schools in Mafraq, joining tens of thousands of Jordanian peers in schools in the northern district as ...

 Aug 31 2015 - India- Flipkart customers to get refund within 24 hours nowKNN India
(MENAFN - KNN India) Flipkart customers will now get refunds as early as within 24 hours of returning the product as the e-commerce giant today launched its instant refund mechanism facility. ...

 Aug 31 2015 - 'Make in India' should also focus on 'Make in India Strategies for Indian healthcare': Jitendra SinghKNN India
(MENAFN - KNN India) India's healthcare sector is expected to be USD 280 billion in size by 2020, growing at a compound annual growth rate of 16 per cent, but it is in "dire need" of right policy ...

 Aug 31 2015 - Jordan- King, Abbas discuss efforts to jumpstart Mideast peace processJordan News Agency
(MENAFN - Jordan News Agency) His Majesty King Abdullah II met Palestinian President Mahmoud Abbas Sunday to discuss efforts to kickstart the stalled Palestinian-Israeli peace process and pledged to ...

 Aug 31 2015 - Israeli Occupation Authorities Arrest Two PalestiniansQatar News Agency
(MENAFN - Qatar News Agency) Israeli occupation forces today arrested two Palestinians and caused many citizens to suffocate during the suppression of a peaceful demonstration which started in the ...

 Aug 31 2015 - Reliance Group to explore QatarThe Peninsula
(MENAFN - The Peninsula)The Prime Minister and Interior Minister H E Sheikh Abdullah bin Nasser bin Khalifa Al Thani meeting Anil Dhirubhai Ambani Chairman of Reliance Group yesterday in Doha. ...

more...


 






Google

Click to Apply

 
 

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