Doha-Mubasher: Watani Investment Company (NBK Capital) raised the fair value of Qatar Islamic Bank (QIB) to QAR 107.30 to equal the closing price of QAR 106 on 13 May, with a “Hold” recommendation, according to a recent report.

QIB is expected to grow by 14% and 13% in 2015 and 2016 respectively due to the bank’s control over the market, benefiting from its Shari’ah-compliant advantage, and the higher growth in the Qatari private sector.

Despite lower asset yields and higher cost of deposits, NBK Capital anticipated net financing income to grow by 14% in 2015.

The financial services firm expected lower drag from investment income in 2015 following the decline by 19% in 2014.

 Return on investment is projected to increase by around 15% in 2016 from 13% in 2014, according to the report.

The company’s total assets added 19% to QAR 99 billion year-on-year in the first quarter of 2014.