QATAR national bank (QNB) is putting Southeast Asia as the focus of its expansion, the chief executive officer of the Middle East’s biggest lender said.
“Our focus really was the Middle East and then we expanded to Southeast Asia where we’re now focusing,” Abdulla Al-Khalifa said in an interview. “If we find the right opportunity for acquisition, we will consider it,” he said, adding there are no deals currently under review.
Lower oil prices are forcing Gulf lenders to consolidate and look for business outside their home markets. QNB has been expanding with the purchase of National Bank of Greece SA’s Turkish unit and Societe Generale SA’s Egypt subsidiary. The bank’s regional growth has been curtailed as Qatar has been locked in a standoff with Saudi Arabia, the United Arab Emirates, Bahrain and Egypt since mid-2017.
Expanding abroad is part of how the bank will continue growing despite the small scale of Qatar’s local market, Al-Khalifa said.
Gas-rich Qatar is home to about 2.8 million people and QNB has roughly half the market share. The lender reported record profit in 2019, helped by higher interest income. The shares have gained 1.7 percent this year after posting a 5.6 percent advance in 2019.
Al-Khalifa also said the reduction in real estate value in Qatar is a “very healthy” correction; the bank has changed the way it finances real estate investments to consider a period of 12 to 15 years instead of six to eight years.
The CEO sees the bank continuing to build credit growth in the private sector, particularly services, trading and contracting; also expects the bank to help finance new liquefied natural gas facilities. He is encouraging consolidation among competitors and would like them to be bigger. (Bloomberg)
