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 Discussed
  • 53
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams