Qatar Islamic Bank -Equity Report -16-04-2012

12-Month Fair Value: QR 90.50
Recommendation: Accumulate – Risk level: 3
Last Close (11 April 2012): QR 77.00

Qatar Islamic Bank (QIB) reported a net profit of QR 388 million in 1Q2012, up 21% YoY and 52% QoQ.

Overall, we believe these are good results. Operating income came in slightly ahead of our forecast. The strong growth in the financing book for the third consecutive quarter and the ongoing high fee income are the major positives. For now, we maintain our “Accumulate” recommendation on QIB with a fair value per share of QR 90.50, which is 18% above the last closing price. However, we will issue an update report on QIB after speaking with the bank’s management.