Qatar Islamic Bank net profit plunges 50pc
Doha, January 21, 2013
Qatar Islamic Bank (QIB), the country's second-largest lender by market value, said fourth-quarter net profit fell more than 50 percent due to higher provisions.
The bank made a net profit of QR110 million ($30.2 million) in the three months to December 31, according to Reuters calculations, compared with QR265 million in the same period a year ago and widely missing analysts' average forecast of QR328.58 million.
It reported an annual net profit of QR1.24 billion, a company statement said. The bank proposed a 37.5 per cent dividend, the statement said.
It allocated QR502 million towards provisions in 2012, compared to QR194 million in 2011, it said.
The lender returned to global debt markets last October after a two-year absence with a $750 million Islamic bond sale, tapping into strong liquidity for regional issuers.
It priced a five-year sukuk at a profit rate of 2.5 per cent, and a spread of 175 basis points over midswaps, tighter than the earlier guidance after strong investor interest.
Fourth-quarter profit at Qatar National Bank (QNB), the first major regional lender to report earnings and considered a bellwether for the sector's performance, was flat at QR2.1 billion earlier this month.
Banks in Qatar are expected to benefit as the country, one of the world's fastest growing economies, spends billions of dollars on infrastructure as it prepares to host football's 2022 World Cup.-Reuters