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Qatari banks QIB, Masraf post Q2 profit rise

DOHA, July 19, 2016

Qatar's two largest sharia-compliant banks, Qatar Islamic Bank (QIB) and Masraf Al Rayan, reported better than expected increases in second-quarter net profit on Monday.

The results, coming after the profit jump at Qatar National Bank last week, mean three of Qatar's four largest banks by assets have now posted rising profits despite a slowing economy and challenges in the construction sector.

Qatar Islamic Bank (QIB), the Gulf state's largest sharia-compliant lender by assets, made 562.6 million riyals ($154.5 million) during the three months to June 30, according to Reuters calculations.

The 13.7 per cent year-on-year advance in earnings beat the 524.3 million riyals average forecast of five analysts polled by Reuters.

Growth at QIB was driven by a 19.5 per cent rise in income from financing and investing to 1.18 billion riyals, according to Reuters calculations.

Qatari banks' performance has been underpinned in recent years by high levels of state spending. But while lenders are having to contend with slimmer state spending in 2016 after the government presented a more austere budget in light of lower hydrocarbon prices, lending remains relatively strong.

Credit growth accelerated in May to its fastest since early 2013, according to central bank data.

QIB's results were also helped by a 22.9 per cent surge in net fees and commission income to 135.25 million riyals, Reuters calculated.

MASRAF

Masraf Al Rayan, Qatar's second-largest bank by market value, reported a 5.4 per cent rise in second-quarter net profit, according to Reuters calculations.

Net profit for the three months to June 30 was 514 million riyals compared with 487.6 million riyals in the same period a year ago, Reuters calculations showed.

Four analysts had on average forecast a quarterly net profit of 509 million riyals for the quarter.

The bank was expecting to post annual profit growth of between 8 and 10 per cent in 2016, chairman Hussain Ali al-Abdulla said in February.

Reuters calculated the figures for both QIB and Masraf from financial statements, in the absence of either bank providing a quarterly earnings breakdown in separate bourse filings. – Reuters




Tags: QIB | Masraf | Qatar banks |

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