BUSINESS Thursday 29 March 2018
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BUSINESS Thursday 29 March 2018 PAGE | 22 PAGE | 24 QFB’s income QSE FTSE100 DOW BRENT Nebras records 8,553.14 7,044.74 23,892.00 $64.63 huge jump in from financial -140.84 PTS +44.60 PTS +34.29 PTS -0.62 assets grows 1.62% 0.64% 0.14% Dow & Brent before going to press 2017 revenue QNBFS remains bullish on Qatari equities for ’18 SATISH KANADY “Similarly, Qatari equities are THE PENINSULA expected to register dividend yields in line with peer average DOHA: Driven by attractive over the next 2 years at an esti- fundamentals, QNB Financial mated 4.3/4.6 percent vs. 4.7/5.0 Import/export levels Services (QNBFS) is bullish on percent. With that in mind, we remain largely Qatari equities for this year. compiled net income expecta- stable with exports Announcing its Qatar equity tions of key Qatari equities that increasing from strategy for 2018 recently, we cover,”, QNBFS noted in its QNBFS noted it remained opti- ‘Qatar equity strategy 2018.’ ana- $5.6bn in May 2017 mistic on the Qatari equity lysts said in.” (before blockade market on long-term and QEWS, QNBFS’ Qatari coverage list start) to $6.0bn only 6 GWCS and QGTS would play. constituted a significant ~43 months later. “Within our coverage uni- percent of the overall total verse, we forecast a normalized market capitalization (ex. QNB 4.4 percent increase in aggregate Group) of the Qatar Exchange. in equity prices, ‘but with much earnings in 2018 followed by a Factors that can negatively of the uncertainty behind us, val- P/E along with a dividend yield significant spending program Import/export levels remain more robust 2019 with 11.7 impact our thesis include decel- uations likely price in the current of 4.7 percent. While the bounce should provide tailwinds for largely stable with exports percent. Despite the issues eration of global economic environment,’ they said. For the beginning in December was growth. Qatar’s macro picture increasing from $5.6bn in May related to the blockade, we high- growth prospects, regional geo- time being, valuations are fueled by optimism regarding div- remains resilient – no significant 2017 (before blockade start) to light that we continue to expect political issues, significant dete- attractive vs. the region’s forward idends and net buying interest in challenges for Qatar to continue $6.0bn only 6 months later. Over Qatari equities to post ROE rioration in oil prices, increase price-to-earnings multiples; the selected names by foreign/GCC to offset potential fund outflows, the same period, imports initially metrics for 2018 and 2019 that in volatility, exit of hot money Qatar Stock Exchange Index investors, the way forward will support the banking system, (and expectedly) declined from are largely in line with peers from emerging/frontier markets, (DSM) trades at a 2018 P/E of depend on continued recovery in sustain economic growth, and $2.6bn in May 2017 to $1.6bn only (12.0/12.5 percent vs. regional etc. 12.5x, complemented by a div- the macro operating envi- defend the peg. 1 month later. peer averages at~11.8/12.2 QNB analysts said the impact idend yield of 4.3 percent, while ronment. Longer-term, attractive Elaborating the big macro percent).” of the blockade was certainly felt regional peer median is at a 11.3x fundamental drivers and a story, QNB analysts noted the → CONTINUED ON PAGE 22 Oil backs away from $70 a Tenders for 26 Al barrel ahead of Furjan Markets to US inventories be announced in Q2 REUTERS THE PENINSULA Al Thakhira, Madinat Al Kaaban, Madinat ash LONDON: Oil fell yesterday DOHA: Tenders for the Shamal, Rawdat Rashed, Al as investors took profit on a implementation of 26 Al Karaana, Al Wakra, Al rally the day before to this Furjan Markets are to be Utouriya, Lkhreeb, Al year’s highs after a report announced by the second Ghwairyya, Al Rayyan Al showed a surprisingly large quarters of this year. The Jadeed, Aba Al Hiran and Ain increase in US crude inven- upcoming markets, which Sinan. tories. are currently at the design The date of the tenders June Brent crude futures state, are to be developed at for the implementation of were last down 53 cents on several strategically selected the upcoming markets was the day at $68.93 barrel by areas of the country. revealed yesterday in a press 1330 GMT, while the May Volvo to build Lynk & Co vehicles at Belgium plant The markets, being statement issued to contract, which expires today, developed by Qatar Devel- announce the beginning of Philippe Muyters (right) , Flemish Minister of Employment, Economy, Innovation, Science Policy was down 45 cents at $69.66. opment Bank in collabo- construction works for phase and Sports; Li Shufu (left), Chairman, Geely automotive manufacturer; and Kris Peeters, Vice-Prime WTI futures fell 67 cents to ration with several other two of the neighborhood Minister and Minister of Employment, Economy and Consumer Affairs; attending the presentation $64.58 a barrel. state agencies, are con- markets, which will see con- of the automotive brand Lynk & Co that will be produced in the Volvo Cars plant in Ghent, Belgium. Traders said most sidered to be one of the struction of six markets that pressure ensued after the leading strategic projects will include 78 shops and are American Petroleum Institute that are targeting the con- expected to be completed (API) on Tuesday reported a solidation of the private within 12 months. surprise 5.3 million barrels sector, participating in Abdulaziz bin Nasser Al rise in crude stocks in the pushing economic growth Khalifa, Chief Executive week to March 23, against QNB named Qatar’s Best Bank forward in line with the Officer of QDB, said: “The expectations for a decline of Qatar National Vision 2030 beginning of construction to 430.6 million barrels. to create a diverse per- works for the phase two of The oil price has risen in for Asia by Asiamoney magazine manent economic Al Furjan Markets will seven out of the last 9 months environment. further benefit citizens and THE PENINSULA and has increased by more Asiamoney’s industry analysists solutions to meet the various QDB is currently in the will support the growth and than 4 percent this year, team. The award reflects QNB’s financial needs of clients in dif- process of finalising the con- competitiveness of the making this the third consec- DOHA: QNB has been named successful strategy and plans to ferent markets, while keeping struction permits and business sector in the state. utive quarter of gains, which as Qatar’s Best Bank for Asia strengthen its leadership in the focus firmly on quality and approvals of the proposed It comes as a fruit of coop- is the longest stretch since by Asiamoney magazine, banking industry, reflected innovation. commercial real estate prop- eration between the Ministry late 2010. during the GlobalCapital Asia- through its strong financial A member of the Euromoney erties. The proposed 26 of Municipality and Envi- US oil production has money’s Middle East Awards results, increased market share group, Asiamoney, specializing markets will be located in ronment, the project’s engi- risen by nearly 25 percent in ceremony held recently in and high ratings, as well pro- in financial markets in Asia, Umm Lekhba, Al Gharaffa, neering office and QDB. This the last two years to over 10 Hong Kong. viding innovative solutions and reports and offers analysis on Izghawa, Bani Hajer, Luaib initiative is a basic solution million barrels per day, taking The prestigious award cel- products to meet global markets’ the financial and investment / Al Muhajirah, Al Aziziya, to the provision of basic it past top exporter Saudi ebrates banks, which have dem- investment needs. markets for capital issuers, bor- Muaither north, Bu Sidra, needs for goods and services Arabia and within reach of onstrated excellence and inno- It also underlines the long rowers, institutional investors, AinKhalid (2 lands), Umm Al that are used on almost daily the biggest producer, Russia, vation in their services and and consistent growth the Group and senior corporate and gov- Saneem(3 lands), Al basis by individuals and which pumps around 11 products through the year, has made in enhancing a com- ernment monetary Sakhama, Saina Al-Humaidi, families.” million bpd. based on inputs from prehensive range of banking decision- makers. 22 BUSINESS THURSDAY 29 MARCH 2018 QFB’s income from financial assets grows by 18.3% THE PENINSULA investments across several will continue to diversify our wealth and assets. markets. portfolio, tapping into new and Besides, QFB, DOHA: Qatar First Bank (QFB), a Moreover, the bank sold its attractive geographical markets. after the completion leading Shari’ah compliant bank stake in Amanat Holding, a Dubai We are well positioned to provide of its second resi- based in Qatar and listed on the based-listed healthcare and edu- The bank’s income capital solutions to growing busi- dential project in Qatar Stock Exchange (QSE), has cation company and generated from placement with nesses in the region, utilizing our London, announced recorded a revenue of QR334.2m overall cash returns of QR25.6m. financial institutions expertise and network. We look offering specialised for the year ended 31 December In line with the results and stood at QR25.6m to partner with market leaders, real estate services 2017. QFB investment portfolio the changes instituted during private and institutional to individuals and continued to generate healthy 2017, QFB’s management con- mainly derived from investors, attracting third party corporates seeking dividends (QR25.5m) which tinued raising efficiency levels cash deployment in money with the objective to to add value to their constitute double the income through the implementation of Shari’ah compliant create value while following portfolios by generated in 2016.