Qatar's listed companies have reported a cumulative net profit of QR31.63bn in 2020, mainly contributed by the net earnings of the banking and financial services sector.
Amidst the challenges posed by the Civid-19 pandemic, as many as 14 listed entities on the Qatar Stock Exchange (QSE) witnessed their net earnings grow year-on-year in 2020 although the overall cumulative net profitability of the listed companies was on the decline.
Insurance was the lone sector that saw earnings growth on the QSE, which otherwise saw 19.65% year-on-year fall in its cumulative net profits in 2020, compared to 5.53% shrinkage in 2019, said the figures collated from the QSE website.
The industrials sector was seen as the major drag in the overall profitability of the listed companies in 2020. The shrinkage in earnings in the transport and banking sectors also had their role in pulling the overall profitability down in the review period.
In 2020, the insurance sector's cumulative net profit grew 18.92% year-on-year to QR499.69mn compared to a sharp 46.26% plunge in 2019. The sector now has six constituents with QLM being the latest entrant. The sector, which saw four of the six constituents report gains in net earnings, contributed 1.58% to the overall kitty compared to 1.07% a year ago.
However, the industrials sector, which has 10 listed constituents, witnessed a huge 44.24% year-on-year contraction in net profitability to QR3.91bn against a 32.86% decrease in 2019.
The sector contributed 12.36% to the overall net profitability of the listed entities in the review period compared to 17.8% the previous year. Only one among them witnessed gains in net earnings.
The cumulative net profitability of banks and financial services sector, which has 13 listed entities, declined 12.22% year-on-year to QR21.35bn against 6.5% growth in 2019.
The banking and financial services sector contributed 67.5% to cumulative net profits 2020 against 61.8% the year ago. Five of the constituents witnessed higher growth in profits.
The Covid-19 and the slide in oil prices would make a dent in the net profitability of the banking sector in the Gulf Cooperation Council (GCC) for the whole of this year, Moody's, an international credit rating agency had said earlier.
The realty segment, which has four listed entities, saw a 20.1% year-on-year contraction in net earnings to QR1.82bn in 2020 against 20.86% plunge the previous year.
The sector constituted 5.75% of the overall net profitability in 2020 compared to 5.79% in 2019. Only one among them exhibited stronger performance in net earnings.
In 2020, the transport sector’s cumulative net earnings shrank 19.08% year-on-year to QR1.46bn against 10% expansion in 2019. The sector has three listed constituents and its net profit constituted 4.62% of the total net profit of the listed companies compared to 4.57% in 2019. Only one among them saw jump in net earnings.
The consumer goods sector, which has 10 listed entities, witnessed a 23.14% year-on-year shrinkage in cumulative net profit to QR1.28bn in 2020 compared to a 10.36% fall in 2019.
The sector contributed 4.05% to the overall net profitability in the review period against 4.24% in 2019. Two among them saw their net earnings grow on an annual basis in 2020.
The telecom sector saw its 2020 net profit decline 29.81% year-on-year to QR1.31n compared to 11.03% rise in 2019. The sector contributed 4.14% to overall net profit in the review period against 4.75% in 2019.
Amidst the challenges posed by the Civid-19 pandemic, as many as 14 listed entities on the Qatar Stock Exchange (QSE) witnessed their net earnings grow year-on-year in 2020 although the overall cumulative net profitability of the listed companies was on the decline.
Insurance was the lone sector that saw earnings growth on the QSE, which otherwise saw 19.65% year-on-year fall in its cumulative net profits in 2020, compared to 5.53% shrinkage in 2019, said the figures collated from the QSE website.
The industrials sector was seen as the major drag in the overall profitability of the listed companies in 2020. The shrinkage in earnings in the transport and banking sectors also had their role in pulling the overall profitability down in the review period.
In 2020, the insurance sector's cumulative net profit grew 18.92% year-on-year to QR499.69mn compared to a sharp 46.26% plunge in 2019. The sector now has six constituents with QLM being the latest entrant. The sector, which saw four of the six constituents report gains in net earnings, contributed 1.58% to the overall kitty compared to 1.07% a year ago.
However, the industrials sector, which has 10 listed constituents, witnessed a huge 44.24% year-on-year contraction in net profitability to QR3.91bn against a 32.86% decrease in 2019.
The sector contributed 12.36% to the overall net profitability of the listed entities in the review period compared to 17.8% the previous year. Only one among them witnessed gains in net earnings.
The cumulative net profitability of banks and financial services sector, which has 13 listed entities, declined 12.22% year-on-year to QR21.35bn against 6.5% growth in 2019.
The banking and financial services sector contributed 67.5% to cumulative net profits 2020 against 61.8% the year ago. Five of the constituents witnessed higher growth in profits.
The Covid-19 and the slide in oil prices would make a dent in the net profitability of the banking sector in the Gulf Cooperation Council (GCC) for the whole of this year, Moody's, an international credit rating agency had said earlier.
The realty segment, which has four listed entities, saw a 20.1% year-on-year contraction in net earnings to QR1.82bn in 2020 against 20.86% plunge the previous year.
The sector constituted 5.75% of the overall net profitability in 2020 compared to 5.79% in 2019. Only one among them exhibited stronger performance in net earnings.
In 2020, the transport sector’s cumulative net earnings shrank 19.08% year-on-year to QR1.46bn against 10% expansion in 2019. The sector has three listed constituents and its net profit constituted 4.62% of the total net profit of the listed companies compared to 4.57% in 2019. Only one among them saw jump in net earnings.
The consumer goods sector, which has 10 listed entities, witnessed a 23.14% year-on-year shrinkage in cumulative net profit to QR1.28bn in 2020 compared to a 10.36% fall in 2019.
The sector contributed 4.05% to the overall net profitability in the review period against 4.24% in 2019. Two among them saw their net earnings grow on an annual basis in 2020.
The telecom sector saw its 2020 net profit decline 29.81% year-on-year to QR1.31n compared to 11.03% rise in 2019. The sector contributed 4.14% to overall net profit in the review period against 4.75% in 2019.