“The Qatari banking system has weathered the global financial crisis relatively well thanks to the country’s enduring macroeconomic growth and the government’s repeated and timely interventions during 2009,” the report said.
“For 2010, we expect Qatari banks’ pre-provision profitability to remain at good levels and to be supported by higher business volumes and a low cost base. The banks’ net profitability, however, is likely to continue to be affected by elevated provisioning expenses,” it said.
Qatari banks report satisfactory liquidity. At year-end 2009, the ratio of liquid assets to total assets for the three rated banks was around 32 percent, higher than the ratio of 26 percent reported at the end of 2008, while the ratio of (market funds – liquid assets/total assets) had fallen to -16 percent.
