Moody’s credit rating agency said that the strong capital of Qatari banks supports income generation, despite the high costs of provisions related to the outbreak of the Coronavirus. About 5 billion riyals.$ 9 billion, in the first half of 2020, despite the financial pressures imposed by the pandemic, and the agency stated that strong capital barriers for banks will continue to support them, but this will be accompanied by a deterioration in the quality of assets due to the pandemic and a drop in oil prices, and according to the report, the increase in Qatari bank revenues was driven by an increase Interest income by 4 percent, in addition to a 14 percent increase in non-interest income, and Moody’s expects that the total income of banks operating in Qatar will decrease in the second half of this year, due to the decrease in the volume of business, and the report indicated an increase in the costs of provisions for loan loss provisions to 26 percent From income before allocations, in the first half of the year, compared to 17% in the comparative period of last year, the report suggested that the volume of allocations would increase, reflecting the problem of loan formation, as weak economic activity makes it difficult for borrowers to make their payments, especially in sectors. Real estate and construction, and around 19 work in the Qatari marketA bank, which includes 7 local commercial banks, in addition to five other Islamic banks. As for foreign branches, they total seven.
Moody’s: The quality of capital supports Qatari banks
