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Islamic Finance News: Islamic Banks profit rises in the second-quarter

  • Qatar: Qatar Islamic Bank (QIB), the Gulf state’s largest sharia-compliant lender by assets, beat analysts’ forecasts as it reported a 13.7 percent jump in second-quarter net profit on Monday, according to Reuters calculations. It made a net profit of 562.6 million riyals ($154.5 million) during the three months to June 30, compared with 494.7 million riyals in the same period a year earlier, Reuters calculated from financial statements in the absence of a quarterly earnings breakdown.
  • Saudi Arabia:  Contracting giant Saudi Binladin Group (SBG) has repaid a 1 billion riyal ($266.7 million) Islamic bond that matured in late June, a sign of modestly easing pressure on the embattled firm, banking sources told Reuters on Thursday. The payment came after a delay of several weeks and used money from a 2.5 billion riyal loan the company secured from two local banks in May, the banking sources said.
  • United Arab Emirates: Growth in demand for business credit in the United Arab Emirates slowed during the three months through June, especially in Dubai, according to a central bank survey published on Thursday. The net balance measure for business lending – the weighted percentage of respondents reporting an increase in demand for loans minus those reporting a fall in demand – fell to plus 3.1 in the quarter from plus 13.6 in the previous quarter.
  • Dubai: Noor Bank’s US$500 million debuts Tier 1 Sukuk on Nasdaq Dubai. It was the 11th Sukuk listing in Dubai this year, as well as the first perpetual Tier 1 Sukuk issued this year from the UAE. The total nominal value of listings in Dubai has reached US$44.56 billion, demonstrating the robust growth Dubai has achieved as the leading global center for Sukuk listings.
  • Oman: Omani banks’ large exposure to the real-estate sector, according to the Central Bank of Oman (CBO), could leave them vulnerable to a weakening property market. In its Financial Stability Report, the central bank said banks have substantial direct and indirect exposure to the real-estate sector and this is a potential source of vulnerability.

(EBCTV)