As politicians around the world take steps to curb profits at the biggest lenders, Qatar National Bank SAQ (QNBK) is producing the best risk-adjusted returns by increasing ties with the government, its largest customer.
Shares of the Doha-based lender returned 4.3 percent in the past five years after adjusting for price swings, the top gain among the 50 biggest banks by market capitalization, according to the BLOOMBERG RISKLESS RETURN RANKING. Qatar National Bank, valued at $25 billion, had the highest total return and the third-lowest volatility.
The lender, whose chairman is also the country’s finance minister, has become 50 percent more profitable than global peers by luring deposits from government-backed savers and lending to government-backed borrowers as Qatar spends about $130 billion to prepare for the 2022 soccer World Cup. Political ties are fueling Qatar National Bank’s growth while China and Brazil cut loan margins, U.S. (S5FINL) lawmakers curb trading and European (SX7P) leaders call for a financial-transaction tax.
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