QNB’s Q3 profit up, despite Turkish lira impact

Qatar National Bank’s (QNB) thirdquarter net profit rose 3.5 percent, the largest bank by assets in the Middle East and Africa said on Wednesday, as a rise in net interest income helped offset the squeeze from a weaker Turkish lira.

QNB, which is 50-percent owned by sovereign wealth fund Qatar Investment Authority, in 2016 completed the acquisition of Turkey’s Finansbank. Now around 15 percent of QNB’s assets and 14 percent of its loans relate to Turkey, according to Arqaam Capital.

The lira has come under pressure this year as a result of investor concerns about President Tayyip Erdogan’s influence on monetary policy and an ongoing row with the United States that has resulted in reciprocal sanctions and trade restrictions.

The bank said the growth of its assets and liabilities had been partly affected by a weaker Turkish lira.

QNB took a foreign exchange translation loss of 2.97 billion riyals ($815.9 million) during the quarter, which analysts said was likely mainly related to the lira.

QNB’s net profit rose to 3.72 billion riyals in the three months to Sept 30 from 3.60 billion a year earlier, it said.

That was in line with a forecast by SICO Bahrain and topped the 3.64 billion riyals expected by EFG Hermes. (RTRS)