By Nicolas Parasie
DUBAI, Oct 18 (Reuters) - Commercial Bank of Qatar posted a 24-percent drop in third-quarter net profit, hit by loan losses, and the chief executive warned on Sunday of lower full-year earnings.
The lender's third-quarter net profit fell to 397 million Qatar riyals ($109 million) -- below analysts' expectations -- from 523.1 million riyals in the same period last year, according to Reuters calculations based on previous financial statements. The company did not provide a quarterly breakdown of its results.
The bank made a net profit of 1.34 billion riyals in the first nine months of the year, down 14 percent from the same period last month, according to a statement posted on the Doha exchange on Sunday.
The bank's net provisions jumped more than 70 percent to 397 million riyals in the first nine months of this year from 230 million riyals in the same period one year ago.
In the third quarter it set aside 50 million riyals against a single corporate default, but declined to name the company.
'We have been set back by the need to set aside additional provisions for our investment and loan portfolio,' chief executive Andrew Stevens told Reuters in an interview.
While Stevens was positive about margins, new loan demand and the group's ability to reduce costs for the remainder of the year, he expected lower annual earnings.
'The real decisive factor is the extent of the provisions we have to make, but at this moment in time I'm confident we will be able to deliver a particularly good fourth quarter,' Stevens said.
'I think we have the underlying earnings capacity to withstand all of the current pressures, albeit we have to expect perhaps reduced annual earnings.'
The bank has not applied for licences to expand in new international markets but said it would add four branches in its home market Qatar, raising the number to 32.
Competitors Qatar National Bank and Qatar Islamic Bank last week reported a 7.5 percent and 53 percent drop in third-quarter net profit, due to a rise in provisions.
(Reporting by Nicolas Parasie, editing by Natsuko Waki/Will Waterman)
($1=3.641 Qatar Rial) Keywords: QATARBANK EARNINGS (nicolas.parasie@thomsonreuters.com; +971 4 391 8301; Reuters Messaging: nicolas.parasie.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
DUBAI, Oct 18 (Reuters) - Commercial Bank of Qatar posted a 24-percent drop in third-quarter net profit, hit by loan losses, and the chief executive warned on Sunday of lower full-year earnings.
The lender's third-quarter net profit fell to 397 million Qatar riyals ($109 million) -- below analysts' expectations -- from 523.1 million riyals in the same period last year, according to Reuters calculations based on previous financial statements. The company did not provide a quarterly breakdown of its results.
The bank made a net profit of 1.34 billion riyals in the first nine months of the year, down 14 percent from the same period last month, according to a statement posted on the Doha exchange on Sunday.
The bank's net provisions jumped more than 70 percent to 397 million riyals in the first nine months of this year from 230 million riyals in the same period one year ago.
In the third quarter it set aside 50 million riyals against a single corporate default, but declined to name the company.
'We have been set back by the need to set aside additional provisions for our investment and loan portfolio,' chief executive Andrew Stevens told Reuters in an interview.
While Stevens was positive about margins, new loan demand and the group's ability to reduce costs for the remainder of the year, he expected lower annual earnings.
'The real decisive factor is the extent of the provisions we have to make, but at this moment in time I'm confident we will be able to deliver a particularly good fourth quarter,' Stevens said.
'I think we have the underlying earnings capacity to withstand all of the current pressures, albeit we have to expect perhaps reduced annual earnings.'
The bank has not applied for licences to expand in new international markets but said it would add four branches in its home market Qatar, raising the number to 32.
Competitors Qatar National Bank and Qatar Islamic Bank last week reported a 7.5 percent and 53 percent drop in third-quarter net profit, due to a rise in provisions.
(Reporting by Nicolas Parasie, editing by Natsuko Waki/Will Waterman)
($1=3.641 Qatar Rial) Keywords: QATARBANK EARNINGS (nicolas.parasie@thomsonreuters.com; +971 4 391 8301; Reuters Messaging: nicolas.parasie.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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