Qatar’s banking sector is expected to witness strong profitability with average earnings slated to see double-digit growth year-on-year (Y-o-Y) in 2012 on strong domestic lending, according to Global Investment House.
“We forecast average earnings growth of 18% Y-o-Y in Qatari banks in 2012 with the sector benefiting from strong domestic lending activity. Overall, we assume 2012 net loan growth of 16.2% for the sector,” Global said, adding “Qatar’s burgeoning economy will trickle down quite favourably to its banking sector”.
Although spreads are expected to tighten due to increased share of public share lending, more competition and funding costs, it said volume growth would drive net interest income that is forecast to grow by 18.9%.
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