Qatar National Bank QPSC Q2 2022 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Edmond Christou - Bloomberg Intelligence - Analyst : Yes. Go ahead. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 18, 2022 / 9:30AM, QNBK.QA - Q2 2022 Qatar National Bank QPSC Earnings Call Unidentified Analyst So on Slide #18, where you have shown the breakup for NPL, sir I want to understand over December 2020, your SME and retail [NPL] portion and portion of NPL has come down, while the corporate portion of NPL has gone up. So why there is this -- we have seen this increase in the corporate loan?

Question: Aybek Islamov - HSBC, Research Division - Analyst : I want to ask you about the funding strategy, in particular in Qatar domestic operations, core domestic. What is your focus right now? Is it, again, more on domestic deposit collection or more international? If you can elaborate on this would be great.

Question: Aybek Islamov - HSBC, Research Division - Analyst : And what's your mix of customer deposits in your core operations outside of Turkey?

Question: Edmond Christou - Bloomberg Intelligence - Analyst : Edman Christou from Bloomberg Intelligence. Just want to follow up on the asset quality metrics here. I think there have been a talk earlier in the year that the Central Bank is supervising or reassessing the Stage 2 exposure for the Bank of Qatar. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 18, 2022 / 9:30AM, QNBK.QA - Q2 2022 Qatar National Bank QPSC Earnings Call I just want to hear from you, if you do expect the share of Stage 2 to pick up in the year, I think it's around 6.8% now. We talked probably about 7% before, I don't know if you expect it to be even beyond 7% for the end of the year? And how this tied up with the coverage ratios. So you are at 123% coverage ratio on Stage 3. We do understand that the limitation on the accounting standard. So if we don't see a downgrade into Stage 3, should we expect this to beef up the Stage 2 which is around 7.5%. I think a few years ago, you were guiding around 9% for Stage 2 coverage that will make you comfortable in the long term. Just so you will give some guidance on this? And the second one, I just want to understand on the inflation adjustment. So the consensus is around 70% inflation in Turkey. Up to June, we are on 40%. So we have another 30% to go. What is the assumption -- if this is your assumption? Are you able to give any nominal value in terms of the charges? Or can you just confirm that assumption, so we can calculate it also?

Question: Edmond Christou - Bloomberg Intelligence - Analyst : Perfect. Just a follow-up on the first one. So if I understand it correctly, we should see improvement gradually in the cost of risk in the second half, correct? Or the...