Qatar's Masraf Al Rayan Q3 profit falls 2.2%

Net for the three months to Sept. 30 was $140.39 million
Masraf Al Rayan.
By Reuters
Sun 25 Oct 2015 07:32 PM

Masraf Al Rayan, Qatar's second largest bank by market value, reported a 2.2 percent fall in third-quarter net profit on Sunday, broadly in line with analysts' expectations.

Net profit for the three months to September 30 was 511 million riyals ($140.39 million) compared to 522.5 million riyals in the same period a year ago, Reuters calculations showed, using financial statements in the absence of a quarterly earnings breakdown.

Three analysts polled by Reuters, on average, had forecast a quarterly net profit of 513.5 million riyals for the period.

Net profit for the nine months to September 30 was 1.51 billion riyals, compared with 1.43 billion riyals in the same period a year ago, a bourse filing said.

The lender, which has the largest weighting of any Qatari stock by index compiler MSCI, said financing activities for the nine-month period reached 59.9 billion riyals, up by 9.2 percent from the same period in 2014. Customer deposits totalled 52.8 billion riyals, a decline of 12 percent over the same period.

Earnings have been propelled in recent years by public spending related to a raft of infrastructure projects as the government prepares to host the soccer World Cup in 2022.

Masraf Al Rayan is the fourth major Qatari bank to report its third quarter results during what has been a mixed earnings season. Qatar National Bank and Qatar Islamic Bank both reported profits growth that beat forecasts, while Commercial Bank of Qatar reported a 43 percent profit drop.

Analysts expect funding costs for Qatari banks to rise as liquidity gradually tightens, with the central bank unexpectedly halving the size of a routine Treasury bill sale on Oct. 1 a sign of the pressures.

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