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Thu 16 Jul 2009 01:31 PM

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Commercial Bank of Qatar posts 9% drop in H1 profits

Net income for Qatar's second-biggest bank by assets declined to QR943m ($259m).

Commercial Bank of Qatar posts 9% drop in H1 profits
PROFIT HIT: The downturn has hurt the results of many banks in the Gulf. (Getty Images)

Commercial Bank of Qatar, the largest private sector bank in Qatar, on Thursday announced a nine percent slide in its first-half profit due to the global financial crisis.

Net income for the bank, the country’s second-biggest bank by assets, declined to QR 943m ($259m), from QR1,039m in the first half of 2008, it said in a statement.

The bank blamed a rise in its net provisions for loans, advances and investments – up to QR254m, from QR86m in the first half of 2008 – as a result of factors relating to the global financial downturn.

It reflected a QR52m loss on its investment portfolio, a higher provision of QR105m against its retail lending portfolio, and a write-off of QR97m on the sale of loans and advances and other exposures from its corporate book, the bank said.

Net operating income for the bank increased to QR1.50bn, up 10 percent from QR1.36bn in the same period in 2008. It said this was due to higher net interest income of QR787m, up from QR517m in the first half of 2008.

The bank’s total assets increased by ten percent in the first half of 2009 to QR59bn, with customer loans growing by seven percent to QR32.1bn and deposits rising four percent to QR30bn.

Loans and advances to customers grew to QR32.1bn, up 7.4 percent from QR29.8bn at June 30, 2008, it added.

Non-performing loans, which amounted to QR474m, represented 1.46 percent of total loans and advances.

The bank’s associates, National Bank of Oman and United Arab Bank, contributed QR75m in the first half of 2009, down from QR101m for the same period in 2008, it said.

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