The C.E.O of the Commercial Bank of Qatar says they’re committed to doing business with Turkey as the bank looks to expand operations there.
Commercial Bank of Qatar [CBQ], the country’s third largest lender by assets, is set to build operations in Turkey according to group Chief Executive Officer Joseph Abraham.
“We are focusing on building it and improving the return on equity,” said Abraham in a Bloomberg TV interview.
The bank has witnessed success in the last few years, with its nonperforming loans achieving better than the market average.
In 2016, CBQ acquired full ownership of Turkish bank Alternatifbank AS.
Abraham expects a stronger growth outlook for the bank in the second half of 2021 as the COVID-19 vaccine rolls out.
As Turkey undergoes a currency crisis and lockdown restrictions due to the pandemic, the country’s banks are at risk of increased exposure due to borrowers unable to pay back their loans while lenders are facing pressure to extend credit to keep the economy afloat.
Relations between Turkey and Qatar have continued to grow with Qatar pumping billions of dollars into the Turkish economy and supporting President Recep Tayyip Erdogan after the failed coup attempt of 2016.
Following the Gulf blockade on Qatar led by Saudi Arabia and the UAE, Ankara came to Doha’s aide, exporting food items to keep supermarket shelves from emptying as well as sending soldiers and building a military base, preventing a possible invasion.