QSE Q1 aggregate profit rise to QR13.1bn sets positive tone for 2024: QNBFS

Banks remained the biggest contributor to the QSE’s aggregate earnings at 57.5% (Q1,2023: 55.8%) followed by industrials (18.1% vs 19.2% in Q1,2023) and telecoms (8.1% vs 8.8% in Q1,2023), according to the latest ‘earnings review’ of QNBFS.

Listed companies on the Qatar Stock Exchange reported a year-on-year growth of 5.8% and quarter-on-quarter growth of 30.7% in aggregate earnings to QR13.1bn during the first quarter, QNB Financial Services (QNBFS) said in its latest ‘earnings review’.

Sectoral performances were mixed but banks, insurance and transportation were the only three sectors out of eight that saw positive earnings growth both year-on-year (YoY) and sequentially. Aggregate topline increased 4.2% YoY but saw a modest 2.3% sequential decline to QR42.8bn.

Aggregate net profit margin came in at 30.6% compared with 30.1% in Q1, 2023 and 22.9% in Q4, 2023.

Banks remained the biggest contributor to the QSE’s aggregate earnings at 57.5% (Q1,2023: 55.8%) followed by industrials (18.1% vs 19.2% in Q1,2023) and telecoms (8.1% vs 8.8% in Q1,2023).

The banking sector posted a large increase in Q1, 2024 aggregate earnings, both YoY and sequentially. For Q1, 2024, the banking sector posted a 9.1% YoY and 15.7% QoQ growth in aggregate headline net income.

The Banks and Financial Services Index underperformed the QSE Index and dropped by 10.6% (QSE Index: -9.1%) in Q1,2024.

Loans experienced an increase QoQ and YoY with a mixed performance. The loan book grew by 1.3% sequentially (+4.4% YoY) to QR1.40tn in Q1,2024.

Deposits also increased both sequentially and YoY. Aggregate deposits increased by 3.2% sequentially (+6.8% YoY) reaching QR1.39tn.

Capitalisation levels of Qatar banks remained robust. Sector average Tier-1 ratio came in at a robust 18.8%. All the banks generated strong Tier-1 ratios with CBQK improving the most.

In the Industrials sector, there was both top and bottom line sector recovery YoY following a decline in 2023 due to high base effects by sector heavyweight Industries Qatar.

This could mark the beginning of earnings recovery/momentum for the sector for the rest of the year, according to the report.

The Industrials Index was down by 1.4% (QE Index: -9.1%) in Q1,2024.

Total traded value was QR8.2bn in Q1, 2024 compared with QR7.6bn in Q4, 2023.

The telecoms sector remained healthy with its aggregate top-line up YoY and down only marginally sequentially.

Aggregate net income, while down modestly YoY, increased significantly compared with Q4,2023.

The Telecoms Index was lower by 2.2% (QSE Index: -9.1%) in Q1,2024.

Total traded value was QR1.9bn in Q1,2024 vs QR1.4bn during Q4,2023.