QATAR'S LOAN-TODE­POSIT RA­TIO TO DE­CLINE

Qatar Today - - BUSINESS -

Qatar's loan-to-de­posit ra­tio, cur­rently in ex­cess of 100%, is ex­pected to de­cline grad­u­ally to reach 99% by 2016, ac­cord­ing to a re­port by Qatar Na­tional Bank. This is due to a more mod­er­ate growth in lend­ing com­pared with a buoy­ant de­posit growth.

Non-per­form­ing loans (NPLs) are fore­cast to re­main low in 2014-16 as as­set qual­ity is sup­ported by the strong eco­nomic en­vi­ron­ment and the siz­able pro­por­tion of low-risk loans to the gov­ern­ment. Go­ing for­ward, low pro­vi­sion­ing re­quire­ments and ef­fi­cient cost bases will also support banks' prof­itabil­ity, the QNB re­port adds.

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