Qatar's CBQ posts 8.5% rise in Q1 net profit

Gulf state's second largest lender cites higher lending growth for improved performance
Qatar's CBQ posts 8.5% rise in Q1 net profit
By Reuters
Tue 29 Apr 2014 01:45 PM

Commercial Bank of Qatar (CBQ), the Gulf Arab state's second-largest lender by assets, posted an 8.5 percent increase in first-quarter profit on higher lending growth.

The bank earned a net profit of QR548 million ($150.5 million) for the opening three months of 2014, compared with QR506 million in the same period last year, it said in a statement.

Analysts had on average forecast a quarterly profit of QR468.5 million, according to a Reuters poll.

The bank, which bought Turkish lender Alternatifbank last year, had previously reported three successive quarters of declining profits as higher provisioning dragged down earnings.

The bank's provisions for impairment losses in the first three months of 2014 dropped to QR59.3 million against QR69.5 million in the same period in 2013.

Loans and advances stood at QR68.7 billion at the end of March, up 33.6 percent on the same point last year.

CBQ has been rapidly expanding its lending activities, as like other banks in the country it benefits from the huge sums being ploughed into the local economy by the government, which is spending billions of riyals on infrastructure development and preparations for hosting the 2022 soccer World Cup.

Deposits stood at QR62.1 billion on March 31, up 34.5 percent year-on-year.

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