Growth Rates in the Banking Sector’s Performance Indicators for the Period 2014-2018

April 14, 2019

1.      Shareholders’ Equity: The implementation of Accounting Standard 9 has had a significant impact on shareholders' equity for the year 2018. Doha Bank was the most adversely affected, as its shareholders' equity declined by 19%, followed by Al Khaliji Bank with a drop of 11%, while Ahli Bank was the least affected and witnessed an increase of its shareholders’ equity of about 4%.

2.      Net Profits: Doha Bank, in addition to being the biggest loser in terms of shareholders' equity, the bank also witnessed a considerable decline in profits by about 31%. Its compound growth rate for the period 2014-2018 dropped as well by about 13%, the lowest among banks. On the other hand, Qatar Islamic Bank led the banking sector with an increase in its compound growth rate of about 10%, followed by QNB with about 5%.

3.      Assets: Al Khaliji Bank ranked the lowest in terms of assets in 2018, with a decline of about 10%. Al Khaliji achieved the lowest rates among Qatari banks in terms of asset size in 2014-2018, with a growth of less than 0.50%.

4.      Loans & Advances: Qatar National Bank (QNB) ranked first in 2018 in terms of loans and advances portfolio by 4.8%. QNB’s portfolio increased by 13% in the period 2014-2018, followed by Qatar Islamic Bank (QIB). Qatar International Islamic Bank (QIIB) however was the biggest loser in 2018 with a decline of 16%, followed by Al Khaliji Bank by about 11%. Nonetheless, the bank that fell behind the most in terms of loans and advances in the past five years was the Commercial Bank, with a decline of about 3.0%, followed by Al Khaliji Bank.

5.      Customer Deposits: QNB was the only bank in the sector to achieve growth in customer deposits for 2018, with an increase of 5.3%, while all other banks recorded a decline. The largest drop was experienced by Al Khaliji Bank, with a drop of 12.5%. Qatar National Bank led this category over the past five years, with about 11%, while Al Rayan Bank came in last with its customer deposits down 1.3%.