Qatar Islamic Bank headed for the biggest drop in two weeks after the Shariah-compliant lender’s first-quarter profit missed analysts’ estimates.
Shares of the bank lost 1.9 percent, set to decrease the most since April 14, to 68.6 riyals at 12 p.m. in Doha as volume jumped to two times the three-month daily average. The stock was the biggest decliner on the benchmark QE Index, which slipped 0.2 percent.
Qatar Islamic, whose shares have fallen 8.4 percent this year, reported a 25 percent retreat in quarterly net income to 291 million riyals ($80 million), missing the 360 million-riyal average estimate of five analysts compiled by Bloomberg. That was the fourth straight quarterly decline in earnings for the bank, which also missed estimates in the fourth quarter, according to data compiled by Bloomberg.
“The stock price will be under pressure because numbers have been down for two or three quarters now,” Doha-based Abdullah Amin, senior research analyst at Qatar National Bank Financial Services, said by phone. “Loans are down, deposits are also down. We need more clarity.”
Financing income declined 3.9 percent to 471 million riyals, and income from fees and commissions declined 45 percent to 54.44 million riyals, according to the lender’s financial statements. Financing assets fell 12 percent, while liabilities, including deposits, dropped 2.7 percent.
Eight analysts have a hold rating on Qatar Islamic’s shares while one recommends buying it, data compiled by Bloomberg show.
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