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UPDATE 1-Qatar bank Masraf Al Rayan's profit flat in second quarter
July 17, 2017 / 1:17 PM / 5 months ago

UPDATE 1-Qatar bank Masraf Al Rayan's profit flat in second quarter

(Adds Q2 based on Reuters’ calculation, update on merger)

DUBAI, July 17 (Reuters) - Masraf Al Rayan, Qatar’s second-largest bank by market value, on Monday reported flat second quarter net profit, according to Reuters’ calculations, in line with analysts’ forecasts.

Masraf Al Rayan is the second major Qatari bank to report its earnings since Saudi Arabia, the United Arab Emirates, Bahrain and Egypt on June 5 cut diplomatic ties with Qatar and imposed economic sanctions on the country.

Qatar National Bank, the Gulf’s largest bank, last week reported an almost 3.6 percent increase in second-quarter net profit.

The dispute has tightened liquidity in Qatar’s money market and led some foreign banks to reduce new business with the Gulf state.

Masraf Al Rayan did not mention the rift in its statement.

The bank’s customer deposits rose to 61.21 billion riyals by the end of June, up by 5.9 percent from the same period of last year. Deposits dipped 3 percent from the first quarter of this year.

Net profit for the second quarter was 509.7 million riyals ($138.5 million) compared with 505.4 million riyals in the year earlier period, Reuters calculations showed, based the bank’s financial statements. The bank does not provide a breakdown of quarterly earnings.

An average of three analysts had forecast a quarterly net profit for Masraf Al Rayan of 522.8 million riyals.

Masraf Al Rayan is in initial merger talks with Barwa Bank and International Bank of Qatar to create Qatar’s second-largest bank.

In its earnings statement, the bank’s chief executive Adel Mustafawi said different due diligence streams and valuation exercises were taking place on the merger, without elaborating.

In the six month period, Masraf Al Rayan said net profit was 1.02 billion riyals compared with 1.05 billion riyals in the same period a year ago. ($1 = 3.6800 Qatar riyals) (Reporting by Tom Arnold, editing by Louise Heavens and Jane Merriman)

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