Dubai: Qatar National Bank, or QNB, reported a near 10 per cent jump in third quarter profit as lending surged, while the Gulf Arab state’s largest lender by market value said it was able to maintain one of the lowest non performing loan ratios in the region.
According to Zawya Dow Jones calculations third quarter net profit increased 9.5 per cent to 2.08 billion Qatari riyals (Dh2.09 billion or $571 million), from 1.90 billion riyals a year ago.
The quarterly result was a touch short of the 2.11 billion riyals that analysts at EFG Hermes had forecast and also missed the 2.22 billion riyals effort that Arqaam Capital had pencilled in.
QNB, the first Qatari bank to issue financial results, is seen as a barometer of health for the overall sector that saw strong government support in the aftermath of the 2008-2009 financial crisis.
Earnings per share
Net profit in the first nine months of the year climbed 15 per cent to 6.2 billion riyals, while earnings per share rose to 8.9 riyals, from 8.3 riyals a year earlier, QNB said in an emailed statement on Sunday.
Loans and advances amounted to 238.6 billion riyals in the nine months to September 30, a 42 per cent surge compared with the year ago period.
Banks in Qatar are vying with regional and international lenders to finance a slew of infrastructure projects being built in time for the 2022 World Cup.
“The bank was able to maintain the ratio of non-performing loans to total loans at 1.2 per cent, a level considered to be the lowest amongst banks in the Middle East and North Africa. Provisions were conservatively managed, as the coverage ratio reached 116 per cent,” the 50 per cent government owned lender said.
The cash-rich Qatari bank has been on an buying spree over the past year, increasing its stake in Iraq’s Mansour Bank to 51 per cent from 23 per cent and also acquiring stakes in a Libyan and Moroccan lender.
