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
 Dec 22 2014 - Oil markets face uncertain future as OPEC targets competitorsAFP
(MENAFN - AFP) The determination of powerful Gulf OPEC members to stifle competition from new oil producers has left the global energy market reeling and sparked unprecedented uncertainty, officials ...

 Dec 22 2014 - MoI discusses setting up national strategic plan to fight drugsEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM))  The Ministry of Interior, MoI, has discussed ways to establish the first national strategic plan to combat drugs. The discussion took place during a specialised ...

 Dec 22 2014 - GCC Secretary-General hails initiative of Saudi King on Qatar, Egypt reconciliationEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM))  Dr. Abdullatif bin Rashid Al Zayani, GCC Secretary-General, expressed satisfaction with the initiative of the Custodian of the Two Holy Mosques, King Abdullah ...

 Dec 22 2014 - Etihad Airways goes double daily to MelbourneEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM))  Etihad Airways today announced plans for a second daily non-stop service between Abu Dhabi and Melbourne from 1st August 2015.The additional flight will be ...

 Dec 22 2014 - Dubai Municipality launches recycling initiative at Safa ParkEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM))  Dubai Municipality has launched an initiative to encourage Safa Park visitors to exchange their recyclables, such as plastic and cans, in exchange for Union ...

 Dec 22 2014 - Ducab Aluminium begins construction of new facility in KizadEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM))  Abu Dhabi Ports Company, ADPC, has announced that Ducab Aluminium Company has broken ground for its new aluminium rod and conductor facility at Kizad.After ...

 Dec 22 2014 - Kuwaiti Emiri Diwan mourns death of Sheikha Sabah Al-Nasser Al-SabahEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM))  The Kuwaiti Emiri Diwan today mourned the death of Sheikha Sabah Al-Nasser Al-Sabah, spouse of His Highness Sheikh Jaber Al-Mubarak Al-Hamad Al-Sabah.According ...

 Dec 22 2014 - OPEC daily basket price Friday 19th DecemberEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM))  The price of OPEC's basket of twelve crudes stood at US$55.52 a barrel on Friday, compared with $56.30 the previous day, according to OPEC Secretariat ...

 Dec 22 2014 - World Islamic Travel Summit to debut in Abu DhabiEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM))  The World Islamic Travel Summit, WITS15, the largest showcase of Halal travel and tourism solutions, is to debut in Abu Dhabi next October.The pioneering ...

 Dec 22 2014 - DEWA sponsors first Emirati student to Lima Climate Change Conference in PeruEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM))  Bader Al Hammadi, an Emirati student and Carbon Ambassadors Programme member, has participated in the United Nations COP20 Climate Change conference in Lima, ...

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