Commercial Bank of Qatar reports third quarter profit rise of 18 per cent

18 October 2009

Commercial Bank of Qatar (CBQ) has reported an 18 per cent increase in profits in the third quarter of 2009 as a result of rising interest income.

The bank said that profit during the three months to 30 September was QR394m ($108m), up from QR333m in the same period of 2008. Net interest income rose by 35 per cent to QR1.2bn during the first nine months of the year.

The bank said its total assets fell to QR56.4bn from QR57.8bn in 2008, which it said was the result of a QR0.6bn fall in customer lending and a QR7.5bn reduction in interbank lending. Deposits increased by 3 per cent to QR30.6bn from QR29.9bn in 2008.

During the first nine months of the year CBQ reported provisions of QR397m, up from QR230m in the same period of 2008. The bank said it had taken provisions of QR289m against loans, and an impairment of QR108m against its investment portfolio.

The bank said it expected to sell another 5 per cent equity in the firm to state-owned sovereign wealth fund the Qatar Investment Authority (QIA) in December. The QIA invested QR807m in the bank through a subscription offer which represented 5 per cent of the bank’s shares in January. The move was part of the Qatari governments’ attempts to shore up the local banking system.

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