Qatar Banking Sector

Executive Summary

What is this report about?

Economic growth in Qatar is underpinned by large-scale government expenditures in various infrastructural projects envisioned as part of Qatar National Vision 2030 document. Hosting the FIFA World Cup in 2022 has only accelerated the process. Private sector credit growth has grown in line with the on-going diversification of the economy. But analysts expect it to moderate in the coming years, as growth is stalled due to fall in hydrocarbon prices. Adoption of IFRS 9 will lead to changes in reporting, and will have an adverse impact in the banksÄö√Ñ√¥ profitability in the coming years, as provisions will rise, driving up impairment charges. In this report, we have analyzed the financial position of the banks and their performance in the last five years (2010-15), and forecasted the banking industries profitability for 2017.

Who will benefit and why?

The report will benefit anyone tracking the Qatar banking sector, and its many players; especially investors, fund managers, financial analysts and investment bankers. In addition, this report would help regulators and educational institutions that require an analysis of the banking sector in Qatar, and the challenges that are plaguing the industry.

How exhaustive is this report?

We have analyzed the status and trends the Qatar Banking sector during the period 2010-15, including discussions on income statement and balance sheet parameters. The report also examines the profitability of the banking sector, and frames expectations for the future. We have discussed lending to both private and public sectors, and the impact of low oil price on deposits. Finally, we enumerated the changes in the reporting framework, as the country adopts IFRS 9 standards, and profiled the major players in the sector.