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Mon 25 Apr 2016 04:44 PM

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Qatar's CBQ sees 36% slump in Q1 net profit

Commercial Bank of Qatar says it earned net profit of $79.1m in the three months to March 31

Qatar's CBQ sees 36% slump in Q1 net profit

Commercial Bank of Qatar (CBQ), the Gulf Arab state's third-largest lender by assets, reported a 36.3 percent fall in net profit attributable to equity holders, below analysts' forecast.

The bank earned a net profit attributable to equity holders of 288.1 million riyals ($79.1 million) in the three months to Mar. 31, it said in a statement. That compares with a profit of 452.4 million riyals in the same period a year earlier.

The average of three analysts polled by Reuters had forecast CBQ would make a quarterly profit of 368.8 million riyals.

The bank earned net profit, inclusive of non-controlling interests, of 274.2 million riyals for the first quarter, 40.7 percent down from the 62.5 million riyals posted in the same period of last year.

CBQ, which also owns Alternatifbank in Turkey and stakes in lenders in the United Arab Emirates and Oman, was weighed by a 52 percent jump in net provisions for loans and advances, which increased to 259.1 million riyals.

Non-interest income also sank 6.6 percent over time frame to 304.9 million riyals because of lower income from fees, commission and foreign exchange.

Net interest income dipped 0.2 percent year on year to 624.3 million riyals.

Loans and advances stood at 75.5 billion riyals at the end of March, up 5 percent on the same point of 2015.

Credit growth in the Gulf state has been one of the main drivers of expansion for banks in recent years as Qatar spends on infrastructure development and ahead of hosting the soccer World Cup in 2022.

But more modest levels of government spending and low oil prices are expected to hamper banking performance in 2016.

Deposits stood at 72.1 billion riyals at the end of the first quarter, up 16.8 percent year on year.

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