Qatar Islamic Bank 2012 Profit Drops 9.5% on Higher Provisions

Qatar Islamic Bank (QIBK) posted a 9.5 percent decline in profit last year as the country’s biggest Shariah-compliant lender by assets raised provisions against bad loans.

Net income was 1.24 billion riyals ($341 million), the Doha-based lender said in an e-mailed statement today. That compared with profit of 1.37 billion riyals in 2011. The mean estimate of seven analysts was for profit of 1.46 billion riyals, according to data compiled by Bloomberg.

The bank raised provisions to 502 million riyals in 2012, from 194 million riyals in 2011, it said.

“Going forward, we can assume similar or low provisions, given that they already booked them,” Abdullah Amin, an equity analyst at Qatar National Bank Financial Services, said in a phone interview.

To contact the reporter on this story: Robert Tuttle in Doha at rtuttle@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.