QIB Q1 net profit rises 7pc, misses forecast
Doha, April 13, 2011
Qatar Islamic Bank (QIB) posted a 7 per cent jump in first quarter net profit on Wednesday, missing analysts forecasts, as net financing income gains were offset by a drop in fee income.
The Gulf state's second-largest lender by market value earned QR321 million ($88.16 million), up from QR300.1 million a year earlier. Analysts on average had forecast quarterly profit of QR344.33 million, according to a Reuters poll.
Net financing income climbed 8.6 per cent to QR457 million but fee income fell 21.7 per cent from a year ago to QR65 million. The bank's investment portfolio surged 261 per cent to QR16.6 billion due to a risk-free investment in government Islamic bonds.
QIB invested QR1.25 billion in a sukuk last June issued by the Qatar Central Bank on behalf of the government to boost the domestic bond market.
The lender also launched a $750 million Islamic bond in late September, part of a spate of debt issues across the Gulf region.
Banks in Qatar are expected to benefit as the world's fastest growing economy spends more on infrastructure in preparation of its plans to host the 2022 World Cup.
Shares in QIB closed up 0.84 per cent at 83.50 riyals before the results were released.-Reuters