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Commercial Bank eyes growth from Qatar's ties with Turkey

Commercial Bank (PSQC) CEO Joseph Abraham said the lender is injecting more capital and focusing on its Turkish operations to benefit from the close ties between Qatar and Turkey, Reuters reported Jan. 31.

Turkey has become an ally of Qatar amid its dispute with fellow Gulf states over alleged terrorism financing activities, Reuters said, noting that Qatari banks have been trying to diversify funding sources since Saudi Arabia, United Arab Emirates, Bahrain and Egypt severed their diplomatic relations with Qatar.

The chief executive predicted a 7% to 9% loan growth in 2018 for its Turkish unit Alternatifbank AS, adding that Commercial Bank aims to deepen its lending to the Qatari government and public sectors in 2018, while reducing its exposure to high-risk sectors and borrowers.

Abraham also said the proceeds from the sale of Commercial Bank's 40% stake in UAE-based United Arab Bank PJSC would be used to further invest in Qatar and Turkey. The bank is also planning potential Swiss franc- and Australian dollar-denominated deals and to issue Formosa bonds, he reportedly added.