*Q2 results exceed expectations
*Analyst says profits do not reflect operational results
(Adds chairman and analyst comment)
KUWAIT, July 21 Kuwait Finance House (KFIN.KW)
(KFH), the country's biggest Islamic lender, reported on
Wednesday a 22 percent rise in second-quarter net profit,
The lender made a net profit of 39.9 million dinars ($138.4
million) in the second quarter, up from 32.7 million dinars in
the year earlier period, KFH said in a statement on the bourse
Net income in the first half of the year was 70.8 million
dinars, it said.
Analysts at EFG-Hermes had expected KFH to post a net
profit of 32 million dinars in the second quarter, according to
a Reuters survey. [ID:nLDE66703O]
Independent analyst Hajjaj BuKhadour said the improvement
"does not reflect the operational results which show that loans
and credit operations were down".
The lender's chairman, Bader al-Mukhaizeem, said in a
statement that financing transactions reached 450 million dinars
during the first half of this year. He did not provide an
explanation for the second quarter profit increase.
(Reporting by Eman Goma and Diana Elias; Editing by Firouz