Commercial Bank of Qatar Q2 profit jumps 24.9pc
Doha, July 27, 2011
Commercial Bank of Qatar (CBQ) reported a 24.9 percent jump in second-quarter profit on Wednesday, beating analysts' forecasts on increased lending and customer deposits.
The country's third largest lender by market value had net profit of 509.6 million riyals ($139.9 million), according to Reuters calculations. That was up from 408 million riyals in the same period last year.
Analysts polled by Reuters forecast an average quarterly profit of 419.72 million riyals. The bank made a net profit of 956 million riyals in the first half of 2011, it said in a statement.
Loans and advances grew 19 percent to 39.8 billion riyals, compared to 33.6 billion riyals at the end of December 2010, CBQ said. Deposits grew to 34.7 billion riyals, up 14 percent compared from the year-earlier period.
Net provisions for loans and advances for the first half of the year rose to 88 million riyals compared to 61 million riyals a year ago, the statement said. Second quarter provisions fell to 35 million riyals, compared to 53 million riyals in the same period last year.
The bank's investments were up 2.7 billion riyals since the end of December 2010 due primarily to the issuance of a three-year bond of 1.5 billion riyals by the government in January 2011 and an increase in Qatar central bank certificates of deposits, the statement said.
"The Qatar economy continues to improve and, despite recent regional events, the outlook for growth is positive," CBQ chairman Abdullah Bin Khalifa Al Attiyah said in the statement.
"In the second quarter, the private sector has shown signs of recovery with the government's planned spending programme expected to deliver additional stimulus as the year progresses."
CBQ shares ended down 0.55 percent on Wednesday. The results were published after markets closed. In February, the bank's shareholders approved a $5 billion bond programme, allowing it to potentially tap international debt markets in the near future though the bank has so far not indicated an intention to issue.
CBQ last tapped global debt markets with a five-year, 275 million Swiss franc-denominated bond issue in November, at 3 percent. Banks in Qatar are expected to benefit as the world's fastest growing economy spends more on infrastructure to host the 2022 World Cup. - Reuters
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