|
(The Group's Comments) Qatar First Bank’s Net Loss
Drops to QAR 301.33 Million for the First Half of 2019
July 29, 2019
Losses: the bank recorded losses of about
QAR 301.3 million for the first half of 2019, compared to a loss
of QAR 353.9 million for the same period in 2018, while its
losses per share amounted to QAR 0.15 versus QAR 0.18 in the
corresponding first half of 2018. As on a quarterly basis, the
bank posted a profit of QAR 3.2 million for first quarter of
2019, which means that the following second quarter witnessed a
loss of QAR 304.5 million.
Gross Income: amounted to QAR
13.8 million by the end of the first half, compared to a
negative deficit of QAR 243 million for the first half of 2018.
The data of the corresponding period included a loss of an
investment valuation of QAR 290.5 million, which reduced the
losses of this first half to QAR 39.6 million.
Impairment of Financial Assets: This
item represents the expected loss on non-performing financial
assets which is an expense deducted from the profit of the first
half. The bank deducted QAR 186.5 million to offset the
impairment losses on financing assets compared to QAR 36.5
million for the same period last year. The bank recorded an
additional provision for impairment of financial assets
amounting to QAR 32 million. The total provisions deducted for
this period, plus the losses of the valuation of investments,
amounted to QAR 258.1 million. The bank also recorded additional
losses included in discontinued operations amounting to QAR 42.9
million.
Accumulated Losses: Article 295 of
the Qatari Companies Law of 2018 states the following: "If the
losses of a joint stock company are half the capital, members of
the Board of Directors shall call the Extraordinary General
Assembly to consider the continuation or dissolution of the
company prior to the term specified in its regulations." The
bank's general assembly last April decided to reduce capital to
extinguish the losses but has not yet done so.
The accumulated losses amounted to about QAR 1.30 billion with 65%
of the capital and the book value of the share decreased to QAR
0.35.
|
