The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Edmond Christou - Bloomberg Intelligence - Analyst
: Just a follow-up on the cost of risk. If I hear correctly, you said the cost of risk will be materially higher than last year. And I do understand the
concept of building a buffer on the Stage 3 and the limitation from auditor. But I'm a bit surprised that 2.5% is the level you are targeting by the
end of the year, not 3%, which I thought it will give you more room to build more buffer. And the NPL of Qatar, this is mainly driven by specific
sector where you see the risk proactive downgrade for you? And how much it takes in terms of time for this NPL to go back to stage 2 and stage
3? What is the progress there?
REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us
consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.
APRIL 13, 2022 / 9:30AM, QNBK.QA - Q1 2022 Qatar National Bank QPSC Earnings Call
The second question I do have is on Turkey. So when you talk about the loan growth of 35% to 40%, if I'm correct, is this organic growth? Or it's a
conversion of dollars into Lira loans? I just want to understand how much of that is organic and inorganic.
And the last question is on the cost of funding. When I look at the dollar spread for debt, it's around 100 basis points. It hasn't picked up regardless
of the tapering or how [quick] Fed and interest rate rises. Expectation, I think the oil prices probably has helped on this. So do you expect more
assurance on that this year? And how do you see the energy prices and the excess of liquidity within the government helping the cost of funding
a local market of Qatar? And what's your expectation on the cost of funding in Turkey? Sorry for asking few questions.
Question: Edmond Christou - Bloomberg Intelligence - Analyst
: Yes, I can hear you.
Question: Edmond Christou - Bloomberg Intelligence - Analyst
: Okay. Very helpful.
REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us
consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.
APRIL 13, 2022 / 9:30AM, QNBK.QA - Q1 2022 Qatar National Bank QPSC Earnings Call
Question: Edmond Christou - Bloomberg Intelligence - Analyst
: Yes, very helpful. So I think it's -- I'm correct to assume that Stage 3 is likely to pick up, and you will build a buffer on that as well? You will be
strengthening it, as Stage 3 pick up, now, it's about [at 1%] .
Question: Edmond Christou - Bloomberg Intelligence - Analyst
: Okay. Sounds good. Thank you appreciate it. Thank you.
Question: Aybek Islamov - HSBC, Research Division - Analyst
: Yes. I wanted to ask you about Egypt. So it looks like your subsidiary in Egypt, they had to revise down their dividend. I believe it's upon the
recommendation of the Central Bank. Can you please elaborate on the Central Bank action? I think your subsidiary was not the only one to receive
that recommendation from the Central Bank of Egypt.
REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us
consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.
APRIL 13, 2022 / 9:30AM, QNBK.QA - Q1 2022 Qatar National Bank QPSC Earnings Call
Secondly, on the loan growth, well, the start of the year, a bit weak, but when do you expect the loan growth to recover? Is it second quarter? Where
do you see the pipeline today, excluding repayments? That's my second question. Yes. That's it.
Question: Aybek Islamov - HSBC, Research Division - Analyst
: Yes. Very helpful.
|
