Qatar National Bank’s second-quarter profit falls after sharp rise in loan provisions
Qatar National Bank’s second-quarter profit fell after it booked sharply higher loan loss provisions due to the global economic conditions, the Gulf’s biggest lender said on Sunday.
Fitch Ratings said last month that it expects Qatar’s non-hydrocarbon sector to contract by 5 percent this year and gross domestic product to shrink 3.8 percent.
QNB posted 2.84 billion riyals ($779.90 million) in net profit in the second quarter, down from 3.83 billion riyals a year earlier
The second-quarter figure was lower than EFG Hermes’ forecast of 3.316 billion riyals for QNB, which operates in more than 31 countries, including large operations in Turkey and Egypt
The bank increased its loan loss provisions in the second quarter to 1.5 billion riyals from 650.5 million a year earlier.
“Considering the global economic conditions, QNB Group opted to increase the loan loss provisions during the first half of 2020 by 1.2 billion riyals ($320 million) to protect the Group from any adverse shocks in the loan book,” the lender said.
“This affected overall profitability for the group.”
QNB, which serves more than 20 million customers, is 50 percent owned by Qatar’s sovereign wealth fund, the Qatar Investment Authority.
For all the latest headlines follow our Google News channel online or via the app
-
QNB says customer accounts safe despite breach
Qatar National Bank, the Middle East's largest lender by assets, said it had taken immediate steps to ensure customers would not suffer any financial loss Banking & Finance -
Qatar’s QNB ups stake in Tunisian bank
Qatar National Bank has acquired an additional 49.96 percent stake of Tunisian Qatari Bank, bringing its ownership stake to 99.96 percent, pending ... Business -
Egypts NSGB falls as QNB offer deadline extended
Egypt’s National Societe Generale Bank slumped after the country’s regulator extended Qatar National Bank's stake purchase offer deadline to Feb. 20, ... Business -
Coronavirus: Cases in Qatar rise to 103,598 after 470 new COVID-19 infections found
Qatar reported 470 new cases of the deadly coronavirus, raising the total number of infections in the country to 103,598, the Ministry of Public ... Coronavirus -
Coronavirus: Qatar Airways says no new aircraft until 2022, cancels Boeing 737MAX
Qatar Airways will not take delivery of any new aircraft until 2022, CEO Akbar al-Baker told UK-based Sky News Wednesday.Al-Baker added that the ... Coronavirus -
Qatar caused Gulf boycott by demanding out of Riyadh Agreement: WTO report
The 2017 boycott of Qatar by the rest of the GCC began as a result of a letter sent by Qatari officials to the GCC demanding the cancellation of the ... Gulf