July 20, 2011 / 11:46 AM / 9 years ago

UPDATE 1-Qatar Islamic Q2 net profit up 27 pct; beats estimates

DOHA, July 20 (Reuters) - Qatar Islamic Bank (QIB) , the Gulf state’s second largest lender by market capitalisation, posted a 26.9 percent jump in second-quarter net profit on Wednesday, beating analysts’ forecasts on a surge in the bank’s investment income.

QIB reported a net profit of 382 million riyals ($105 million), compared with 301 million riyals in the year-earlier period, it said in a statement.

Analysts polled by Reuters on average expected a quarterly net profit of 347.36 million riyals.

QIB reported first-half profit of 703 million riyals, the statement said.

Investment income in the first half of the year surged to 311 million riyals from 48 million riyals in the year-earlier period helping boost quarterly profit.

“The announcement of the results comes on the back of a strategic transformation programme that the bank is implementing with a view to restructuring both its local groups and its affiliates abroad,” QIB Chairman Sheikh Jassim bin Hamad bin Jassim bin Jabr al Thani said in the statement.

QIB is said to be planning to raise between $500 million to $1 billion via a sukuk sale. The lender pulled out of a deal to buy a majority stake in Indonesian Islamic lender PT Bank Muamalat, banking sources said earlyt this month.

Qatar’s central bank has ordered conventional banks to stop offering Islamic banking services by year-end, a move seen as likely to provide a boost to Islamic lenders in the Gulf state.

QIB shares closed 0.3 percent higher before the release of the results on the Qatar Exchange. (Reporting by Regan Doherty, Editing by Dinesh Nair)

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