Posted on September 23, 2019

PwC Qatar issued its first Qatar Banking Sector Report, which looks at key trends affecting the sector and the performance of the eight listed Qatari banks. The PwC report, based on figures released by the eight listed banks, found that the sector performed strongly, with healthy aggregated profitability while asset composition remained mostly unchanged.

According to PwC, over the past three years, Qatar’s banking industry has grown at a remarkable pace. The total loans and advances of the 8 listed commercial banks, which includes financing assets, grew by 19.8% (CAGR of 6.20%) in H1 2019 compared to H1 2016. Customer deposits, which includes equity of (unrestricted) investment account holders and customers’ current accounts of the Islamic Sharia compliant banks, grew by 22.5% (CAGR of 7.40%) between H1 2016 and H1 2019. The aggregated profits of the listed commercial banks also increased by 17.5% (CAGR of 5.5%) in H1 2019 compared to H1 2016 driven by the increase of the aggregated net income. 

Burak Zatiturk, PwC Qatar Financial Services Leader said: “Disruptive technologies are reshaping financial services the world-over. Collaboration between traditional banks and fintechs must be a priority for the industry and will require stakeholders to develop solid infrastructure, regulations, procedures and human capital. The Qatar financial industry is undergoing rapid transformation, with all the stakeholders in the industry working together in synergy to ensure long-term economic prosperity.” He added: “The Qatar Financial Industry has produced positive results over the quarter, as demonstrated by the interim (consolidated) reports published in H1 2019 by the 8 listed commercial banks.”

More recently, the total assets of those 8 listed commercial banks, on the Qatar Stock Exchange, witnessed an increase by approximately QAR 44.6 billion (3%) over the first half of 2019. In particular, total assets reached QAR 1.53 trillion as at 30 June 2019, compared to QAR 1.49 trillion as at 31 December 2018. The aggregated loans and advances of the 8 listed banks stood at QR 1.05TN as at 30 June 2019, increasing by 2.8% over the first half of 2019. Similarly, customer deposits, equity of (unrestricted) investment account holders and customers’ current accounts, which represents the “Customer Deposits” balances as at 30 June 2019 witnessed an increase over the first half of 2019. The increase in customer deposits over the first half of 2019 amounted to QR 44.2BN, or 4.45%.

The total profit of the 8 commercial banks listed on the Qatar Stock Exchange increased by 4.6% in H1 2019, compared to H1 2018, reaching an approximate figure of QR 12.56BN for the period-ended 30 June 2019. Furthermore, the earnings per share for H1 2019, witnessed an increase (compared to H1 2018) for most of the listed banks, as disclosed each of the respective financial statements.

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