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Mon 14 Jul 2014 03:30 PM

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Qatar's QIB posts 15% jump in Q2 net profit

Qatar Islamic Bank says it made a profit of $107m in the three months to June 30, beating analysts' expectations

Qatar's QIB posts 15% jump in Q2 net profit
(Photo for illustrative purposes only)

Qatar Islamic Bank (QIB), the Gulf state's largest sharia-compliant lender by assets, posted a 15 percent jump in second-quarter net profit on Monday, according to Reuters calculations, beating analysts' expectations.

The Islamic lender made a net profit of QR389.6 million ($107 million) during the three months to June 30, Reuters calculated, compared with QR338.9 million in the same period a year ago.

Analysts on average forecast a net profit of QR348.8 million for the period in a Reuters poll.

QIB did not provide a quarterly breakdown so Reuters calculated the figure based on previous financial statements.

Net profit for the first six months of the year gained 15 percent year-on-year to QR725 million, a statement from the bank said.

Total lending jumped 32 percent year-on-year to stand at 54.5 billion riyals at the end of the second quarter. That built on the strong growth posted in the first quarter, when net profit also grew by 15 percent, backed by higher lending.

Deposits, which also posted a significant increase in the first quarter, climbed 33 percent to stand at 61.3 billion riyals, with the growth helping the bank to "significantly improve its liquidity position", the statement said.

QIB said in March it had entered into exclusive talks with Bank Asya about acquiring a stake in the Turkish lender. However, sources told Reuters earlier this month these exclusive talks had ended.

Bank Asya has said the report that the talks had ended did not reflect the truth, but QIB has yet to comment on the matter.

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