Net profit in the three months to March 31 rose to 1.7 billion riyals ($467.3 million), the company said in a statement, compared with 1.27 billion riyals in the prior year period.

QNB is the first major regional lender to report earnings and is closely watched for indications of the sector’s performance.

Loans and advances, and financing activities jumped 19.5 percent during the quarter, while deposits and unrestricted investment accounts grew 36.4 percent, the statement said.

Net interest income and income from financing activities increased by 43.6 percent, the statement said.

Although QNB has been expanding abroad, Chief Executive Officer Ali Shareef Al Emadi said its main market remained Qatar for its public and private sector project financing opportunities.

Banks in the state are expected to benefit as the world’s fastest growing economy spends more on infrastructure in preparation for hosting the 2022 World Cup.

In March, Qatar’s central bank governor said the economy should expand by 18 percent in 2011 and that loan growth would be better than last year.

Shares of the company closed up 0.9 percent before the earnings statement, rose 61 percent last year and are down three percent so far in 2011.