DOHA Jan 20 Qatar Islamic Bank (QIB),
the Gulf state's second-largest lender by market value, said
fourth-quarter net profit fell more than 50 percent due to
The bank made a net profit of 110 million riyals ($30.2
million) in the three months to December 31, according to
Reuters calculations, compared with 265 million riyals in the
same period a year ago and widely missing analysts' average
forecast of 328.58 million riyals. [ID: nL5E9C4A21]
It reported an annual net profit of 1.24 billion riyals, a
company statement said.
The bank proposed a 37.5 percent dividend, the statement
It allocated 502 million riyals toward provisions in 2012,
compared to 194 million in 2011, it said.
The lender returned to global debt markets last October
after a two-year absence with a $750 million Islamic bond sale,
tapping into strong liquidity for regional issuers. It priced a
five-year sukuk at a profit rate of 2.5 percent, and a spread of
175 basis points over midswaps, tighter than the earlier
guidance after strong investor interest.
Fourth-quarter profit at Qatar National Bank
(QNB), the first major regional lender to report earnings and
considered a bellwether for the sector's performance, was flat
at 2.1 billion riyals earlier this month.
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
($1 = 3.6404 Qatar riyals)
(Reporting By Regan Doherty, Editing by Louise Heavens)