Commercial Bank of Qatar falls short of $121.39m profit estimates, posting $84.93m instead
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.