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Qatari firms, banks enjoy growth amid strong fundamentals
(MENAFN) Qatari firms continue to showcase robust financial health, characterized by low leverage and solid Return on Equity (RoE), with Qatari banks standing out due to their exceptional capital adequacy, high profitability, and strong provision coverage.
In its QSE Fourth Quarter (4Q) 2024 Earnings Preview, QNB Financial Services (QNBFS) highlighted the growing focus on enhancing shareholder value. “With several QSE companies boasting strong balance sheets but lower valuations, new initiatives are emerging to boost shareholder returns. The recent introduction of rules permitting interim dividends for QSE-listed firms could further enhance Qatar’s attractiveness to both local and foreign investors,” QNBFS noted.
The banking sector has outperformed the broader Qatar Stock Exchange (QSE) Index in 2024, with the banking sector index rising by 3.4 percent while the QE Index declined by 2.4 percent.
QNBFS expressed optimism for 2025, citing potential improvements in asset quality as a key driver of investor confidence. “A positive outlook on asset quality could act as a catalyst, as concerns persist over non-performing loans (NPLs) and Stage 2 loans, particularly for mid-sized banks, which have yet to show meaningful improvement,” the report stated.
Additionally, the anticipated resumption of monetary loosening is expected to bolster the Qatari equity market’s appeal as an attractive yield play, further solidifying its position in the region.
In its QSE Fourth Quarter (4Q) 2024 Earnings Preview, QNB Financial Services (QNBFS) highlighted the growing focus on enhancing shareholder value. “With several QSE companies boasting strong balance sheets but lower valuations, new initiatives are emerging to boost shareholder returns. The recent introduction of rules permitting interim dividends for QSE-listed firms could further enhance Qatar’s attractiveness to both local and foreign investors,” QNBFS noted.
The banking sector has outperformed the broader Qatar Stock Exchange (QSE) Index in 2024, with the banking sector index rising by 3.4 percent while the QE Index declined by 2.4 percent.
QNBFS expressed optimism for 2025, citing potential improvements in asset quality as a key driver of investor confidence. “A positive outlook on asset quality could act as a catalyst, as concerns persist over non-performing loans (NPLs) and Stage 2 loans, particularly for mid-sized banks, which have yet to show meaningful improvement,” the report stated.
Additionally, the anticipated resumption of monetary loosening is expected to bolster the Qatari equity market’s appeal as an attractive yield play, further solidifying its position in the region.
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