The Qatar Stock Exchange listed companies have registered a more than 10% year-on-year growth in overall net profits in 2022, mainly supported by earnings expansion in the telecom, realty and transport sectors.
The 50 listed entities have cumulatively reported net profit of QR49.48bn, the bulk of which came from the banking and industrials sectors, which together contributed more than 83% of the cumulative net profits in the review period.
The net earnings growth of the listed companies in 2022 considerably slowed against 41.09% the previous year, said the data compiled by the Qatar Stock Exchange.
The 2021 results had seen strong rebound of the corporate sector after the Covid-19 pandemic and the rising inflation and interest rates globally and its reflection in the Gulf shores had its share in dampening the net profitability of Qatar's corporate sector during 2022.
The banks and financial services sector, which has 13 listed entities, reported a 7.91% year-on-year jump in total net profit to QR26.44bn against a 12.85% expansion (with 12 entities) in 2021. The sector contributed 53.44% to the total net profits of the listed companies in January-December 2022.
The industrials sector, which has 10 listed constituents, saw a 9.5% year-on-year increase in net profitability to QR14.76bn against a 252.34% surge year ago. The sector contributed 29.14% to the overall net profitability of the listed entities during 2022.
Within the industrials sector, the country’s underlying firms that have direct linkages with the hydrocarbons sectors saw normalisation of their earnings.
The realty segment, which has four listed entities, saw total net earnings surge 32.12% year-on-year to QR1.65bn during 2022 against 31.15% shrinkage in 2021. The sector constituted 3.33% to the overall net profitability in the review period.
The telecom sector, which has two constituents, reported net profit of QR2.86bn, which was 5.78% of the total net profits during 2022. The sector had seen an about eight-fold increase in net profitability in 2022 compared to 71.46% plunge in 2021.
The transport sector, which has three listed constituents, saw total net profits grow 16.88% year-on-year to QR2.69bn against 58.22% jump during 2021. The sector's net profit constituted 5.44% to the total net profit of the listed companies during 2022.
However, the insurance sector, which has seven companies, registered a net loss of QR0.79bn during 2022 compared to net profit of QR1.07bn (with six constituents) the previous year, mainly dragged by weakened net earnings of two risk cover providers.
The proposed mandatory health insurance and the substantial expansion planned in the North Field are expected to augur well for the insurance sector in the future, according to reports.
The consumer goods and services sector, which has 11 listed entities, saw a 1.07% year-on-year dip in total net profit to QR1.86bn at the end of 2022 against 45.12% growth (with 10 entities) the previous year. The sector contributed 3.76% to the overall net profitability in the review period.