File photo used for representation only.
Doha: The aggregated total assets of Qatar’s eight listed commercial banks on the Qatar Stock Exchange grew by 3.7 percent to QR1.69 trillion in the first nine months of 2020 (Q3 2020), according to PwC in its latest ‘2020 Qatar Banking Sector Report’.
The report added that the banks’ aggregated loans and advances to customers grew by 4.5 percent to reach QR1.17 trillion, showing a steady growth in 2020 despite the implications of the COVID-19 pandemic.
The eight listed commercial banks on the Qatar Stock Exchange are Ahli Bank, Commercial Bank of Qatar, Doha Bank, Khaliji Bank, Qatar International Bank, Qatar International Islamic Bank, Qatar National Bank, and Rayan.
In the report, PwC added that Qatar’s financial institutions are accelerating transformation programmes to build financial institutions of the future aimed at increasing cost efficiencies and lending activities by reaching out to new customer segments.
As restrictions taken in the first half of 2020 gradually ease, the upcoming six months will offer the rare opportunity to embrace change at an unprecedented pace with both corporations and customers. To design the financial institutions of the future, there are key priorities to focus on which includes integrating digital with traditional branches in order to attract a younger and digitally savvy customer segment as well as using new methods for assessing credit worthiness and better understanding the customer.
Burak Zatiturk, Qatar Financial Services Leader at PwC Middle East, said: “The Qatar banking sector is embracing change, and evidence can be found in the Q3 2020 financials. In light of the lessons recently learned throughout the past year, financial institutions now have the capacity to accelerate transformation programmes in order to design the financial institutions of the future.”
This edition of the ‘2020 Qatar Banking Sector Report’ shows that banks steadily grew their lending activity, accelerating the pace of expansion by diversifying the source of funding through a double-digit growth of debt securities and Sukuk financing.
Bassam Hajhamad, Country Senior Partner and Consulting Leader at PwC Middle East, added: “The consolidation of major banks recently seen in Qatar will result in stronger financial institutions with significant liquidity available to support the country’s economic growth. Not only will this strengthen the country’s banking sector, but we also expect to see a positive impact on the local stock exchange as well as an increase in future transactions”.
