Qatar Islamic Bank posts 46% rise in profit

RIYAL PROFIT: Qatar Islamic Bank reported a 46 percent rise in profit for the first nine months of 2008. (Getty Images)

Qatar Islamic Bank (QIB), the world’s fourth largest sharia-compliant bank, on Thursday posted a 46 percent rise in profit for the nine months to September, on gains from investments.

The Doha-based bank, which has a market value of $5.60 billion, said profit climbed to QR1250m ($343.3 million), up from QR858 million for the same period the year before.

Shares in the bank were down 3.93 percent in early trading on Thursday.

QIB chief executive Salah Jaidah said in statement released on the Doha Stock Exchange that “expanding QIBs operations and investments” and “strengthening” its Islamic finance services had helped the company post strong results.

The group’s assets are now worth QR30.1 billion, the bank said.

Jaidah admitted the competition in the Gulf banking sector was fierce and said he planned to beef up retail services and increase investments locally, regionally and globally.

QIB’s investments include $150 million to fund the construction of the Abu Fontas Desalination Plant for Qatar Electricity and Water Company and a QR1.1 billion commitment to developer Barwa Real Estate.

Qatar’s sits on the world’s third largest natural gas reserves and its economy grew around 14 percent last year.

It is the second big Islamic bank to report increased earnings after Sharjah Islamic Bank posted a 67 percent lift in net profit on Wednesday.

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