Qatar Islamic Bank (QIB), the Gulf state’s second-largest lender by market value, posted an 8.7 per cent drop in second quarter net profit on Wednesday, Reuters calculations show, missing analysts’ expectations.
The bank made a net profit of 348.9 million riyals ($95.8 million) for the quarter, according to Reuters calculations, falling short of the 382 million riyals it recorded a year earlier and below analysts’ average forecast of 397.8 million riyals.
It made a first-half net profit of 736.9 million riyals, a five per cent increase from the year-earlier period, the lender said in a statement. QIB did not provide quarterly numbers in the statement.
The bank’s total assets grew 26 per cent to 63.2 billion riyals in the first-half, as a result of 11 billion riyals in new financing activities during the last one year, the statement said.
Customer deposits grew 26 per cent to 33.4 billion riyals during the six months ended June 30, it said.
Net operating income in the first half grew 18 per cent, while net fee and commission income increased by 86 per cent, according to the statement.
Banks in Qatar are expected to benefit as the country, one of the world’s fastest growing economies, spends billions of dollars on infrastructure as it prepares to host football’s 2022 World Cup.
Earlier this month, Qatar National Bank (QNB), the first major regional lender to report earnings and considered a bellwether for the sector’s performance, posted a 16.7 per cent jump in second-quarter profit.
In December, QIB announced it would acquire the sharia-compliant corporate portfolio of International Bank of Qatar, without giving a value for the acquisition.
“QIB is moving ahead with the execution of its strategic transformation program to enhance the bank’s leading position in Islamic finance and effectively contribute to the development of the country’s banking sector,” QIB Chairman Sheikh Jassim bin Hamad bin Jassim bin Jaber al Thani said in the statement.
The move came after Qatar’s central bank directive that conventional banks stop offering sharia-compliant banking services amid worries of overlaps between the two.
QIB shares on Wednesday closed down 0.1 per cent to trade at 76.2 riyals before the results were announced.