Qatar government unprecedented infrastructure spending in time for the 2022 soccer World Cup boosted banks' revenues. Net income from lending at Qatar National Bank averaged QR1.82 billion ($530 million) in the first three quarters of 2011, 64 percent more than a year earlier. Earnings rose 18 percent to QR513.2 million at Commercial Bank of Qatar and 21 percent at Qatar Islamic Bank. Net income from lending at JPMorgan Chase & Co., the second-largest US bank by assets, dropped 8 percent to $11.9 billion. Qatar, the world's biggest exporter of liquefied natural gas, plans to invest about $88 billion over the next decade to host the world's most-watched sporting event. The government estimates the economy will expand by 16 percent in 2011, helped by rising gas exports. The country's default risk declined this month for the first time since July as local lenders reported profits that beat analysts' estimates. “What the World Cup has done is focus outside investors and pundits on the size of investment going on,” Ryan Ayache, a Dubai-based banking analyst at Deutsche Bank, said. “The real point is that the Qataris are spending a lot domestically. All banks will see substantial growth. Qatar National Bank will grab the lion's share of business as it has the critical size.” Qatar National is planning to raise at least $1 billion from a debt sale to fund credit growth. The state-controlled lender said Aug 29 it set up a $7.5 billion euro medium-term note program and hired Barclays Plc, HSBC and QNB Capital to manage the sale. Third-quarter profit jumped 31 percent at Qatar National Bank, the country's largest lender, and rose almost 9 percent at the next-biggest Commercial Bank. Results at both companies beat analysts' forecasts. Net income climbed 10 percent in the same period at Doha Bank and 11 percent during the last nine months at Masraf Al Rayan. “The results demonstrate positive momentum in both revenue and lending growth and we will look to maintain this for the remainder of the year,” Commercial Bank's Managing Director Hussain Al Fardan said. Qatar projects a budget surplus of QR22.3 billion this fiscal year as income from liquefied-natural
