(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%.