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Wed 13 Apr 2011 06:00 PM

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QIB Q1 profit gains 7%, below analyst forecast

Qatar Islamic Bank earned QR321m($88.16m), up from QR300.1m a year earlier

QIB Q1 profit gains 7%, below analyst forecast
(Getty Images)

Qatar Islamic Bank (QIB) posted a 7 percent jump in first quarter net profit on

Wednesday, missing analysts forecasts, as net financing income

gains were offset by a drop in fee income.

The Gulf state's second-largest lender by market value

earned QR321m($88.16m) , up from QR300.1m a year earlier.

Analysts on average had forecast quarterly profit of QR344.33m, according to a Reuters poll.

Net financing income climbed 8.6 percent to QR457m but fee income fell 21.7 percent from a year ago to QR65m.

The bank's investment portfolio surged 261 percent to QR16.6bn due to a risk-free investment in government

Islamic bonds.

QIB invested QR1.25bn in a sukuk last June issued

by the Qatar Central Bank on behalf of the government to boost

the domestic bond market.

The lender also launched a $750m Islamic bond in late

September, part of a spate of debt issues across the Gulf

region.

Banks in Qatar are expected to benefit as the world's

fastest growing economy spends more on infrastructure in

preparation of its plans to host the 2022 World Cup.

Shares in QIB closed up 0.84 percent at QR83.50 before

the results were released.

($1=QR3.641)

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