Middle East

QNB has recorded profits, but “be vigilant”-Doha News

QNB continues to secure funding to be cautious in the many markets in which it exists

QNB Group, the largest financial institution in the Gulf region, was reported to have cautioned by “increasing the funds stored in reserves.” Bloomberg When Reuters

on Tuesday, Reuters The world’s strongest banks said they recorded a 10% increase in 2020 net profit from $ 3.3 billion to $ 3.6 billion. Further calculations show that the bank’s fourth-quarter revenue was $ 2.9 billion, higher than analysts initially expected.

Many other banks in the Gulf have seen improvements in regional and international markets as COVID’s pandemic restrictions were relaxed at the end of 2021. Qatar itself has a bright outlook as it prepares for the World Cup and as energy and oil prices rise.

However, QNB is curbing to prepare for credit losses by increasing reserves and monitoring stakeholder and volatile international markets.

The representative told Bloomberg:[QNB] We continue to pay attention to the external environment regarding potential risks that may arise from the major markets in which the QNB Group operates. “

Banks have already posted an allowance for doubtful accounts of $ 1.9 billion over the past year, 21% higher than the previous year, for fear of needing reserves to cover losses that are unlikely to be repaid. This protected trade principle is prevalent in international businesses, especially including Turkey, Egypt, India and France.

In Turkey, the amount of loans owned by QNB Qatar Finansa Bank It decreased from 10.4% in 2020 to 9.6% in 2021.

Read again: Qatar’s inflation rate reaches record high

Turkey has had its currency devalued significantly in the last 12 months. This continued as President Recep Tayyip Erdogan’s policy of not raising interest rates caused inflation. According to Bloomberg, authorities have since implemented a series of steps to support Lira.

Citigroup analyst Rahul Bajaj said in a research note, “Although the headline results disappoint us, this is almost entirely due to an increase in the allowance for doubtful accounts. “. Much of the price increase seems to be “used to cover the building’s coverage.”

Current status of QNB

  • Operating profit 28.3 billion rials; estimated 27.33 billion (range 26.57 billion to 27.84 billion)
  • Dividend per share 0.55 Riar
  • Coverage increased from 107% to 117%

Serving more than 20 million clients, QNB is 50% owned by the Qatar Investment Authority, Qatar’s sovereign wealth fund.

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https://www.dohanews.co/qatar-national-bank-records-profit-but-remains-on-alert/?utm_source=rss&utm_medium=rss&utm_campaign=qatar-national-bank-records-profit-but-remains-on-alert QNB has recorded profits, but “be vigilant”-Doha News

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