April 11 (Bloomberg) -- Qatar Islamic Bank, the Persian Gulf country’s biggest Sharia-compliant lender by assets, said first-quarter profit jumped 21 percent on higher fee and commission revenue, beating analysts estimates.
Net income rose to 388 million riyals ($106.6 million) from 321 million riyals a year earlier, the bank said in an e-mailed statement today. The average estimate of four analysts was for a profit of 331 million riyals, according to data compiled by Bloomberg. Income from fees and commissions rose 69 percent to 99.6 million riyals. Financing income increased 7.2 percent to 490.4 million riyals.
Qatar’s banks boosted lending as the country raised spending on infrastructure including a new airport, seaport, roads and rail systems. The nation’s total credit facilities, including loans, rose an annual 31 percent in February while deposits were up 5.5 percent, according to central bank data.
Qatar National Bank SAQ (QNBK), Qatar’s biggest lender, posted a 17 percent gain in first-quarter profit, meeting analysts’ estimates, on increased lending and foreign-exchange gains.
Qatar’s Sharia-compliant lenders face reduced competition this year after the central bank ordered commercial lenders to close Islamic banking arms last year. Qatar Islamic acquired closely-held International Bank of Qatar’s Islamic banking portfolio in December.
Qatar Islamic’s earnings per share rose to 1.65 riyals from 1.45 a year earlier, the bank said. Assets rose 18 percent to 49.8 billion riyals and customer deposits gained 17 percent to 29.9 billion riyals.
Qatar Islamic shares fell 0.5 percent to 77 riyals on the Qatar Exchange today before the results were released. The shares declined 8.7 percent this year compared with a 0.2 percent drop for the QE Index. (DSM)
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