Qatar's CBQ Q4 net misses forecast despite 66% rise

  • Share via facebook
  • Tweet this
  • Bookmark and Share
MISSED FORECASTS: Despite posting a $84.9m profit, the Commercial Bank of Qatar fell short of analysts estimations (Getty Images)

MISSED FORECASTS: Despite posting a $84.9m profit, the Commercial Bank of Qatar fell short of analysts estimations (Getty Images)

Commercial Bank of Qatar's (CBQ) fourth quarter net profit soared 66 percent, the bank said on Sunday, but the results fell short of analysts' expectations.

Qatar's second largest bank by market value posted a net profit of QR309m ($84.93m), compared with $51m a year earlier.

Analysts on average expected the bank to make a quarterly profit of $121.39m, according to a Reuters poll.

In the prior year quarter, CBQ's earnings suffered a $46.6m hit related to a corporate default.

The bank had full year net profit of $450.3m, it said in a statement to the Qatar bourse. CBQ's board recommended a cash dividend of 7 riyals per share.

Impairment losses on loans and advances totalled $45.7m for 2010, while losses on investments were $35.1m, it said.

On Tuesday, CBQ said it received funds from Qatar Investment Authority (QIA), the Gulf state's sovereign wealth fund, after it sold 20.62 million shares to the fund at a price of 78.3 riyals per share.

The sovereign fund is taking up a 10 percent stake in Qatari banks - the remainder of a planned 20 percent purchase announced during the global financial crisis - to provide support to its local lenders.

QIA's move is slated to take place in the first quarter and is likely to boost confidence in the sector.

Qatar's central bank issued a $13.74bn three year bond to local banks last week to raise funds for development projects and to drain excess money from the banking system.

Qatar National Bank, Qatar's largest lender by market capitalisation, posted a 40.2 percent jump in fourth quarter earnings on January 10, beating analysts' expectations as financing and interest income soared.

Qatar National Bank was the first major regional lender to report earnings and is closely watched for indications of the sector's performance.

CBQ shares closed 2.2 percent lower on the Qatar bourse Sunday before the results were announced. The broader index dropped 1.5 percent.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Most Popular
Most Discussed
  • 20
    Why Dubai should consider removing the rent cap

    Not even one comment supporting the author. I wonder if he is trying to create a bubble. more

    Monday, 24 November 2014 2:25 PM - Anil
  • 14
    Life sentence for London hammer attacker

    The death sentence is a free pass. The purpose of punishment has always been to provide a lesson for misbehaving. No one learns a lesson by dying. Life... more

    Friday, 21 November 2014 2:02 PM - LordLands
  • 5
    Is this the end of F1?

    Compare this to WEC and you see a stark difference. The 'formula' for WEC is much more wider and more accomodating. They have been runnning hybrids for... more

    Monday, 24 November 2014 2:30 PM - Vincent