Turk­ish deal helps boost QNB profit

Kuwait Times - - BUSINESS -

Qatar Na­tional Bank (QNB), the Gulf’s largest lender, met an­a­lysts’ fore­casts yes­ter­day with a 8.7 per­cent in­crease in third-quar­ter net profit, lifted by its re­cent takeover of Tur­key’s Fi­nans­bank. Ce­ment­ing its po­si­tion as the largest lender in the Mid­dle East and Africa by as­sets, the bank com­pleted a 2.7 bil­lion euro ($3.02 bil­lion) pur­chase of Tur­key’s fifth-largest pri­vate­ly­owned lender by as­sets from Na­tional Bank of Greece in June. That buy helped lift QNB’s net fees and com­mis­sion in­come by roughly two-thirds and its net in­ter­est in­come by 49 per­cent dur­ing the third quar­ter from the same pe­riod of last year.

QNB posted a net profit of 3.41 bil­lion riyals ($936.5 mil­lion) dur­ing the quar­ter, com­pared with 3.13 bil­lion riyals in the cor­re­spond­ing pe­riod of 2015, ac­cord­ing to a fi­nan­cial state­ment re­leased by the bank. That was broadly in line with fore­casts from three an­a­lysts polled by Reuters, who had on av­er­age ex­pected a quar­terly net profit of 3.26 bil­lion riyals. QNB, which also owns a busi­ness in Egypt and a 23.5 per­cent stake in pan-African lender Ecobank In­ter­na­tional, has been striv­ing to build its pres­ence out­side of its small do­mes­tic mar­ket, where banks are ad­just­ing to slim­mer state spend­ing in 2016 after the govern­ment tight­ened its bud­get for the year against a back­drop of lower oil prices. — Reuters

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