Qatar Islamic Bank posts 26.9% jump in Q2 net profit

By Rizwan Khatik - Fri Jul 22, 6:17 am

Qatar Islamic Bank (QIB)

Qatar Islamic Bank (QIB) , the Gulf state’s second largest lender by market capitalisation, posted a 26.9 percent jump in second quarter net profit on Wednesday, beating analysts’ forecasts on a surge in the bank’s investment income.

QIB reported a net profit of QR382 million ($105 million), compared with QR301 million in the year-earlier period, it said in a statement.

Analysts polled by Reuters on average expected a quarterly net profit of QR347.36 million.

QIB reported first-half profit of QR703 million, the statement said.

Investment income in the first half of the year surged to QR311 million from QR48 million in the year-earlier period helping boost quarterly profit.

“The announcement of the results comes on the back of a strategic transformation programme that the bank is implementing with a view to restructuring both its local groups and its affiliates abroad,” QIB chairman Sheikh Jassim bin Hamad bin Jassim bin Jabr al Thani said in the statement.

QIB is said to be planning to raise between $500 million to $1 billion via a sukuk sale. The lender pulled out of a deal to buy a majority stake in Indonesian Islamic lender PT Bank Muamalat, banking sources said earlyt this month.

Qatar’s central bank has ordered conventional banks to stop offering Islamic banking services by year-end, a move seen as likely to provide a boost to Islamic lenders in the Gulf state.

QIB shares closed 0.3 percent higher before the release of the results on the Qatar Exchange.