(The Group’s Comments) Doha Bank Net Profit
Drops to QR 307 Million in Q1 2019
May 01, 2019
Profits: Doha Bank’s net profit decreased by
19% to QR 307.5 million in the first quarter of 2019, compared
to QR 381.4 million for the corresponding quarter of 2018, while
its earnings per share amounted to QR 0.99 versus QR 1.23. This
decline was due to a decrease in operating income of QR 62.6
million in conjunction with a surge in expenses of QR 43.3
million.
Net Interest Income: This item represents the main
source of the Bank’s income. Interest from customer loans,
financial investments (fixed income instruments) and cash
balances amounted to QR 492.7 million in the first quarter of
2019, a drop of 12% compared to QR 560 million for the
corresponding period of 2018. This decrease was due to higher
interest expenses caused by higher cost of deposits.
Net Operating Income: Doha Bank’s net income for this
year’s first quarter amounted to QR635.5 million, a decrease of
9% compared to QR 698.1 million posted in the corresponding
quarter of 2018. This decrease can be tracked back to the drop
in the net interest income as mentioned above, in addition to a
decline in the income of financial investments that recorded a
loss of about QR 1.1 million, as opposed to last year’s first
quarter profit of QR 9.7 million.
Expenditures: amounted to about QR 358.3 million,
an increase of about 14% compared to QR315 million in the first
quarter of last year. This climb was due to the decline in the
value of loans and advances to customers, which increased from
QR 49.7 million for the first quarter of 2018 to QR 120 million
in the first quarter of the current year.
Comprehensive Income: The Bank posted a profit from the
valuation of its financial assets of QR 157.2 million in the
statement of comprehensive income, as opposed to a loss of QR 68
million for the same period of 2018.
Loans & Customer Deposits: Loans and advances fell by 1.8% or
QR 1.10 billion to QR 58.7 million, and customer deposits also
dropped by 1.3% or QR 1.3 billion to QR 54.5 million, while
loans to customer deposits ratio reached 108%.
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