Qatar’s Doha Bank Q4 net profit jumps 49.4 percent

Qatar’s Doha Bank Q4 net profit jumps 49.4 percent

Doha Bank, Qatar's fifth largest bank, posted a 49.4 percent jump in fourth-quarter net profit, on increased lending and deposits, but the result missed two analysts' average forecast.

January 19, 2012 2:31 by Reuters

Net profit climbed to 230 million riyals ($63.2 million), according to Reuters calculations, up from 154 million riyals a year earlier but still missing an average forecast from two analysts of 267.6 million riyals.

The bank made an annual net profit of 1.24 billion riyals, up 17.7 percent from 2010, it said in a statement.

Loans and advances rose 15.7 percent to 30.7 billion riyals for the year, the statement said. Deposits grew 2.8 percent to 31.7 billion riyals in 2011.

The board proposed a cash dividend of 4.50 riyals per share.

The bank’s chief executive said in August that it will likely go ahead with a planned bond issuance by the first quarter of 2012.

Earlier this month, Qatar National Bank, the first major regional lender to report earnings and considered a bellwether for the sector’s performance, posted a 40 percent jump in fourth quarter profit.

Banks in Qatar are expected to benefit as the country is one of the world’s fastest growing economies, set to spend heavily on infrastructure as it prepares to host the 2022 soccer World Cup.

Doha Bank’s shares closed 0.8 percent lower before the results were announced, while the index declined .5 percent. ($1=3.638 Qatari riyals) (Reporting By Regan Doherty; Editing by Firouz Sedarat)