Doha Bank Q3 profit jumps to 280.6m riyals

Bank said in June that it planned to issue a bond by the end of the year
Doha Bank Q3 profit jumps to 280.6m riyals
ECONOMIC GROWTH: Qatars economy grew at an average pace of 17.4 percent over the past five years and it is expected to exceed Saudi Arabia and UAE in coming years. (Getty Images)
By Reuters
Tue 19 Oct 2010 09:52 PM

Qatar based Doha Bank posted a 37 percent rise in quarterly net profit in a market with a robust economy that is expected to see consolidation in the banking sector.

Qatar's fifth largest bank had a third quarter net profit of $77 million, compared with analysts' average expectation for $77.2 million and $56.3 million a year earlier.

Goldman Sachs began coverage of Doha Bank in September with a "buy" rating, saying Qatari banks are well capitalised but that the growth potential of the sector is relatively limited partly due to higher banking penetration.

There are 18 banks operating in a nation with a population of only 1.6 million, including four Islamic banks and seven foreign owned lenders such as European behemoths HSBC and BNP Paribas.

Qatar's economy grew at an average pace of 17.4 percent over the past five years and it is set to largely outperform fellow Gulf oil producers such as Saudi Arabia and the UAE in coming years due to expansion of its gas facilities.

Doha Bank said in June it planned to issue a bond by the end of the year and a recent flurry of bond issues from the Gulf state could provide the impetus for an imminent bond sale.

Shares of Doha Bank closed down .10 at 54.90 riyals on Tuesday before the results were released. (Reuters)

 

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