Qatar National Bank (QNB) rose yesterday to its highest since 2003 after the Qatar Investment Authority (QIA), the country's sovereign wealth fund, announced it would be taking an additional 10 per cent stake in its local banks during the first quarter.
"It is positive because it would allow banks to grow even faster by increasing their capital, strengthening their balance sheet and they would be able to lend more," said Tarik el Mejjad, an analyst at Nomura in London. QIA initially took a 10 per cent stake in Qatari banks in 2009 to replenish their capital after the global crisis.
QNB is expected to be among the main beneficiaries. The lender this week reported a 36 per cent increase in net profitto 5.7bn rials for the full year, above analyst estimates. Loan growth was up 40 per cent year on year, and deposit growth was 31.5 per cent higher. Non-performing loans remained under control, edging up slightly to 0.9 per cent last year from 0.7 per cent in 2009.
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