Doha-Mubasher: Watani Investment Company (NBK Capital) raised the fair value of Doha Bank to QAR 55.30, representing 5% upside potential compared to the latest closing price, with a “Hold” recommendation, according to a recent report.

The bank’s Q2-15 net profits decreased 2% year-on-year (y-o-y) and 9% quarter-on-quarter (q-o-q) to stand at QAR 381 million, pressured by lower operating income.

The bank previously reported profits of QAR 801 million ($219.58 million) in H1-15, compared to QAR 787 million ($215.75 million) in the same period of 2014.

Total operating income declined 9% y-o-y and 4% q-o-q, representing 1.6% lower than NBK Capital’s forecast as slightly higher-than-expected net interest income was countered by weaker-than-forecast non-interest income.

Non-interest income plummeted 31% y-o-y and 12% q-o-q, according to the financial services firm.

Loan growth was sustained, achieving 4.4% q-o-q and 9.3% year to date, slightly higher than NBK Capital’s expectations.

Deposits rose sharply 14% q-o-q resulting in a loans-to-deposits ratio of 103% at the end of June compared with 112% by the end of March 2015.