(MENAFN- The Peninsula) By Satish Kanady I The Peninsula
GCC listed companies' fourth quarter (Q4, 2018) profits are estimated to increase 28 percent year-on-year (YoY). In Qatar, estimates showed 14 percent YoY improvement in overall 4Q18 earnings, primarily driven by Industries Qatar (IQ) earnings and banks reporting moderate earnings.
According to SICO analysts' consensus estimates, Industries Qatar's bottom line is forecasted at QR1.3bn, +34 percent YoY, on the back of higher products prices. Additionally, Qatari banks' overall profit is to increase 10 percent YoY, due to lower provisioning charges and higher non-interest income. Doha Bank's net income is expected to improve 1.5x in the fourth quarter.
Kuwaiti companies' earnings are forecasted to increase by 14 percent YoY with YoY growth in banks (+10 percent YoY) and telecoms (+33 percent) . NBK's net earnings is expected to go up 22 percent YoY at KWD 93m, benefiting from healthy lending growth.
In Q4, 18, Omani companies' results are expected to improve from OMR 140m vs. OMR 67m in 4Q17- mainly lifted by NBO and Omantel. Banks overall profit is expected to increase 29 percent YoY. NBO's 4Q18 net income to come at OMR 11m vs. a weak 4Q17 net income of OMR 0.4mn due to asset quality deterioration and booking a huge impairment.
Bank Dhofar's net earnings to be 1.4x higher YoY at OMR 12m, and HSBC Oman's net income to increase 48 percet YoY at OMR 8m. In addition, Omantel's bottom line is expected at OMR 28.4m, +13 percent YoY On the other hand, Bahraini companies' 4Q18 earnings is forecast to be 33 percent higher YoY, primarily lifted by Batelco.
Batelco is estimated to report BHD 16.2m net income in 4Q18, compared to the net loss of BHD 22m YoY, as 4Q17 was impacted by major impairment in Yemen and Jordan. While banks are expected to report 9 percent higher YoY profits, BBK's 4Q18 bottom line to increase 10 percent YoY, on the back of increase in retail lending. NBB's net income to go up 5 percent YoY, an Increase in investments and higher retail lending expected to boost NII.
Saudi companies' profits based on our compiled list of consensus estimates, are expected to increase 58 percent YoY, led mainly by banks and petrochems. Of the SAR 8.7bn higher earnings YoY estimated by consensus, 60 percent is from only two companies, i.e., SABIC and Saudi electricity where 4Q17 had major one-offs which is unlikely to be repeated this quarter. Petrochemical's 4Q18 results are estimated to increase 32 percent YoY, while decline 17 percent QoQ, on lower QoQ product prices.
UAE companies' aggregate earnings estimated to increase 5 percent YoY. Consensus expects most of the UAE banks (+7 percent YoY on an aggregate level) to report higher YoY earnings.
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