In its “GCC Equities-3Q14 Consensus Estimates” released yesterday, Investment Bank SICO forecasted GCC companies’ Q3 profits to increase by 13.6 % on a YoY basis and 1 % quarter-on-quarter, according to The Peninsula website. Qatar listed companies’ net profit is estimated to grow by 14.1 % for the third quarter of 2014 (Q3, 2014) on year-on-year basis. A consensus estimates indicate 2.8 % growth in the profits of the companies compared to the previous quarter. Analysts estimates are available for 148 companies, compared to 141 companies in Q2, 14, representing 76 % of the total market capitalisation of the regional market. The total number of companies covered in Qatar is 11, including the banking major, QNB, Commercial Bank of Qatar, Doha Bank, Masraf Al Rayan and QIB. Commercial Bank of Qatar’s earnings is projected to increase by 72 % YoY and Masraf Al Rayan by 23 %. Masraf Al Rayan’s QoQ earnings is projected to grow by 12 %. Bahraini companies’ earnings are expected to grow the most followed by UAE and Kuwaiti companies. Corporate earnings of Bahrain are expected to report 39 % YoY earnings growth led by strong profit growth from Alba due to improving LME Aluminium prices and persistent higher physical premiums. AUB is also expected to report 36 % YoY bottom line growth, led by higher non interest and interest income and lower provisions. Emirati companies’ earnings are forecast to grow 29 % led by strong performance across most sectors. UAE banks are expected to report higher earnings supported by lower provisions and UAE real estate companies profit growth will be boosted by higher property sales and recurring income. Also, Etisalat profits will grow 48 % due to the full consolidation of Maroc Telecom, according to the report. Sequentially, Kuwaiti and Bahraini companies’ are expected to report highest QoQ profitability growth followed by Qatari companies. NBK’s earnings are forecasted to increase by 31 % QoQ. For Bahrain, Batelco’s profits are expected to rise by 25 % QoQ; the teleco had one off ASF impairment of BD2m in Q2, 14. UAE and Omani companies are projected to report a sequential decline in earnings. UAE real estate companies’ profits are expected to fall QoQ due to lower hospitality revenues and other income. The SICO analysts noted S&P GCC price index has rallied 19 % year-to-date (YTD), comfortably outperforming the global markets as the S&P Global Index is up just 1 % YTD.