Qatar Islamic Bank (QIB), the Gulf state’s second biggest lender by market value, reported a 14.3 percent drop in first quarter earnings, missing analysts’ expectations.
The bank made a net profit of $82.46 million in the quarter, down from $96.1 million a year earlier, it said in a statement on the bourse website.
Analysts polled by Reuters had expected an average quarterly profit of $103.6 million.
Earnings per share fell to $0.39 from $0.47 in the same period in 2009, the statement said without giving detailed results.
In December, Qatar Islamic said it had exposure to a Dubai World Islamic bond maturing in 2017 worth $14.8 million. Dubai World has said sukuk holders would be paid in full, pending agreement over its restructuring plan.
Khalid al Sahli, analyst, Global Investment House, Kuwait, said: “QIB was hurt by large provisions last year, but we expect provisions will be reduced this year.”
He added: “We’re waiting for more detailed numbers, but generally QIB and all other Qatari banks will benefit from the economic boom in Qatar this year.”
Other Qatari banks have reported robust earnings so far this quarter. Qatar National Bank, among the first Gulf Arab banks to disclose first quarter results, posted a 25 percent rise in first quarter net profit on increased lending and Islamic banking activities.
Qatar’s Masraf al Rayan reported a 44 percent increase in quarterly profit.
Qatar’s sovereign wealth fund took a second 5 percent stake in QIB’s capital in December 2009 as part of measures by the Qatar Investment Authority (QIA) to buy 10 percent to 20 percent of listed banks’ capital to shore up the banking sector.
QIB shares closed 1.1 percent lower on Wednesday before the results were issued. (Reuters)
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