Qatar National Bank QPSC

Qatar National Bank QPSC maintains a relatively strong liquidity position, with a price-to-book ratio of 1.49 and a price-to-tangible-book ratio of 1.49, indicating that the market values the bank's equity at a moderate premium to its book value. The bank's debt-to-equity ratio of 0.68 suggests a balanced capital structure, with liabilities not overly burdensome relative to equity. However, the risk assessment notes a medium liquidity risk, with net cash being negative after subtracting total debt.

In terms of profitability, the bank's return on equity (ROE) of 3.69% and return on assets (ROA) of 0.32% are below the industry median for banks, indicating that the bank is generating relatively modest returns compared to its peers. The price-to-earnings ratio of 40.36 suggests that investors are paying a premium for the bank's earnings, which may reflect expectations of future growth or a relatively stable operating environment in the Gulf region.

The bank's revenue is primarily concentrated in the Middle East and North Africa, with a significant portion derived from its domestic operations in Qatar. The bank does not disclose detailed segment revenue breakdowns, but its exposure to the Qatari economy and regional financial markets is a key factor in its performance. The bank's geographic concentration may expose it to regional economic fluctuations, particularly in the energy and construction sectors, which are major contributors to the Qatari economy.

Looking ahead, the bank's growth trajectory appears to be modest. The current fiscal year is expected to show a slight increase in revenue, with the next fiscal year projecting a similar trend. The bank's capital expenditure of -732.93 million QAR indicates a reduction in investment spending, which may reflect a strategic shift toward cost optimization or a focus on digital transformation. The bank's free cash flow of 3.905 billion QAR provides flexibility for dividends, share repurchases, or further investment in high-return opportunities.

The risk assessment highlights a low dilution risk, with no significant dilution expected in the near term. The bank's shares outstanding for both basic and diluted scenarios are identical, indicating no imminent share issuance or dilution from stock options or convertible securities. However, the bank's liquidity risk remains a concern, as its net cash position is negative after accounting for total debt, which could limit its ability to meet short-term obligations without additional financing.

Recent events, including regulatory filings and investor relations communications, suggest that the bank is maintaining a conservative approach to risk management and capital allocation. The bank's mean price target of 21.83 QAR, as estimated by analysts, implies a potential upside of approximately 22.6% from the current market price of 17.8 QAR. The analyst recommendations are generally positive, with a mean recommendation of 1.80, indicating a strong buy to buy consensus.

Revenue grew 11.6% annually over four years, reaching QAR 35.8 billion in FY2026, demonstrating strong top-line expansion.

Analysts project 18% upside to a mean price target of QAR 21.83, reflecting positive market sentiment.

Free cash flow surged 37.5% year-over-year to QAR 10.3 billion in FY2026, enhancing liquidity generation.

Total assets expanded 6.2% annually over four years to QAR 1.39 trillion, supporting scale-driven growth.

Return on equity of 3.7% lags the bank cohort median of 6.3%, signaling weaker capital efficiency.

Long-term debt increased to QAR 137.8 billion in FY2026, raising leverage concerns despite equity growth.

Net income growth slowed to just 1.7% year-over-year in FY2026, suggesting diminishing earnings momentum.

The company faces medium liquidity risk, which could constrain operational flexibility during market stress.

Return on assets of 0.32% remains low, indicating limited ability to generate profit from total assets.

Revenue QAR 9.43B, +8,1% YoY; Net income +1,7% YoY.

• ▍Revenue QAR 9.43B, +8,1% YoY
• ▍Net income +1,7% YoY
• ▍Free cash flow −12,6% YoY
• ▍Net margin 45.9%

Revenue QAR 9.31B, +6,2% YoY; Net income +4,1% YoY.

• ▍Revenue QAR 9.31B, +6,2% YoY
• ▍Net income +4,1% YoY
• ▍Free cash flow +7,9% YoY
• ▍Net margin 44.8%

Revenue QAR 9.20B, +11,7% YoY; Net income −2,6% YoY.

• ▍Revenue QAR 9.20B, +11,7% YoY
• ▍Net income −2,6% YoY
• ▍Free cash flow −33,6% YoY
• ▍Net margin 48.1%

Revenue QAR 8.54B, +10,4% YoY; Net income +3,0% YoY.

• ▍Revenue QAR 8.54B, +10,4% YoY
• ▍Net income +3,0% YoY
• ▍Free cash flow +7,6% YoY
• ▍Net margin 48.5%

Revenue QAR 8.73B; Net margin 48.8%.

• ▍Revenue QAR 8.73B
• ▍Net margin 48.8%

Revenue QAR 8.77B; Net margin 45.7%.

• ▍Revenue QAR 8.77B
• ▍Net margin 45.7%

Revenue QAR 8.24B; Net margin 55.2%.

• ▍Revenue QAR 8.24B
• ▍Net margin 55.2%

Revenue QAR 7.73B; Net margin 52.0%.

• ▍Revenue QAR 7.73B
• ▍Net margin 52.0%

Revenue QAR 35.78B, +9,0% YoY; Net income +1,7% YoY.

• ▍Revenue QAR 35.78B, +9,0% YoY
• ▍Net income +1,7% YoY
• ▍Free cash flow +37,5% YoY
• ▍Net margin 47.5%

Revenue QAR 32.82B, +7,9% YoY; Net income +7,8% YoY.

• ▍Revenue QAR 32.82B, +7,9% YoY
• ▍Net income +7,8% YoY
• ▍Free cash flow −23,1% YoY
• ▍Net margin 50.9%

Revenue QAR 30.42B, +5,4% YoY; Net income +8,1% YoY.

• ▍Revenue QAR 30.42B, +5,4% YoY
• ▍Net income +8,1% YoY
• ▍Free cash flow +10,7% YoY
• ▍Net margin 51.0%

Revenue QAR 28.86B, +25,3% YoY; Net income +8,6% YoY.

• ▍Revenue QAR 28.86B, +25,3% YoY
• ▍Net income +8,6% YoY
• ▍Free cash flow +1,2% YoY
• ▍Net margin 49.7%