Qatar National Bank (QNB) is expected to maintain strong profitability levels for the upcoming years, according to an equity research by Amin Advisory.

However, the growth trend is expected to slow down given the current size of the bank. Historical growth is unlikely
to be maintained unless the State of Qatar initiates more government projects through QNB, it said.

However, profitability is still expected to grow given QNB's more aggressive lending trend and low-yield deposit advantage, said the report.

Qatar National Bank has displayed strong performance consistently in the past few years due largely to the government support it enjoys. This support is likely to continue in the future, given the government’s ownership in the bank.

Moreover, the bank is expected to capitalize on wider interest margins due to government support and access to new industries and geographical regions.

This also serves QNB well in terms of international lending opportunities.

There are minor concerns about interest rate, credit and liquidity risks. However, the bank has set up solid risk management procedures in place (including derivatives) to hedge against such possibilities, said the report. - TradeArabia News Service

The full report is available here from Amin Advisory