Doha-Mubasher: Watani Investment Company (NBK Capital) raised the fair value of Qatar Islamic Bank (QIB) to QAR 107.30, representing 1% upside potential compared to the latest closing price, with a “Hold” recommendation, according to a recent report.

QIB’s Q2 profits jumped 27% year-on-year (y-o-y) and 24% quarter-on-quarter (q-o-q) to stand at QAR 495 million, backed by operating income which rose 18% y-o-y and q-o-q.

The bank reported a 23.4% rise in net profits to QAR 895.07 million ($245.37 million) in the first half of 2015, compared to QAR 725.21 million ($198.8 million) in H1-14.

The QAR 217 million investment income recorded in Q2-15 is much higher than QIB’s normalized quarterly level which averaged QAR 159 million since the beginning of 2014.

Net financing income came higher than the financial services firm, increasing 22% y-o-y and 13% q-o-q. Financing yields appear to have been broadly stable q-o-q while the cost of funds levelled up slightly. 

Deposits gained 20% q-o-q, resulting in a financing-to-deposits ratio of around 90% by the end of June 2015.