The main differences between conventional bank and Islamic bank Essay

The main differences between conventional bank and Islamic bank - Essay Example Even this is unchanged in the asset category. All assets including fixed assets and other assets are summed accordingly after that. The total assets are written below. Doha Bank had an additional investment in an associate company which Qatar Islamic Bank did not have. In the liabilities section, again there are a lot of similarities. Net liabilities at the end of 2010 for Doha Bank stand at 39, 319, 885 Qattari Riyals while those of Qatar Islamic Bank stand at 20, 979, 710 Qatari Riyals. Qatar bank had liabilities due from Sukook financing activities which are nowhere to be seen in the Doha Bank balance sheet statement. Total shareholder’s equity of Qatar Islamic Bank stood at 9,124, 004 while that of Doha Bank stood at 6,043, 493 (All amount in Qatarri Riyals) . There is hedge reserve in Doha Bank while Qatar Bank did not have any hedge reserve. Income statement: Net income for Qatar Islamic Bank as of year ending December 2010 is specified as 1,833,139 while that of Doha Ba nk is 1,054,245 (all figures stated in QR). The way in which income is calculated is very different for both banks. In Doha Bank net operating income is calculated as the sum of net income from insurance activities, net Islamic financing and investing income, net fees and net commission income. In Qatar Islamic bank the above categories are not used.