CBQ Q3 net profit jumps 8.7pc to $151.9m
Doha, October 17, 2011
Commercial Bank of Qatar (CBQ), the country's third largest lender by market value, reported an 8.7 percent jump in third-quarter profit on Monday on increased lending and deposits.
CBQ made a net profit of 552 million riyals ($151.9 million) in the three-month period to September 30, up from 508 million riyals in the same period last year.
The bank reported a nine-month net profit of 1.51 billion riyals.
Nine-month net provisions for loans and advances increased to 123 million riyals, from 57 million riyals in the first nine months of 2010, a company statement said.
Loans and advances grew 24 percent to 41.5 billion riyals, from 33.6 billion riyals at the end of December 2010. Deposits increased 16 percent to 36.9 billion riyals at the end of September compared with 31.9 billion in the prior-year period.
"Market credit demand in both the public and private sectors has increased during the third quarter and we have been able to further the development of our corporate and retail businesses," Commercialbank's group chief executive officer Andrew Stevens said in the statement.
Banks in Qatar are expected to benefit as the country is one of the world's fastest growing economies -- GDP grew as much as 41.8 percent in the second quarter -- and is set to spend more on infrastructure as it prepares to host the 2022 World Cup.
In August, the lender appointed banks to arrange a $5 billion bond programme, but there has been no further progress on a debt sale so far. The euro medium term notes programme was approved by shareholders in February.
Earlier this month Qatar National Bank (QNB), the first major regional lender to report earnings and considered a bellwether for the sector's performance, posted a 27 percent jump in third-quarter profit. - Reuters