Dubai Islamic Bank Q1 Net Profit on the Rise

Dubai Islamic Bank Q1 Net Profit on the Rise

Dubai Islamic Bank (DIB), the largest Sharia-compliant lender in the emirate, on Monday said its first-quarter net profit rose 11 percent, helped by growth in its core businesses.

April 30, 2012 9:48 by kippreport

Dubai Islamic Bank (DIB), the largest Sharia-compliant lender in the emirate, on Monday said its first-quarter net profit rose 11 percent, helped by growth in its core businesses. DIB, an advisor to Dubai government’s recent $1.25 billion bond sale, posted a net profit of 245 million dirhams ($66.70 million) for the first-quarter, it said in a bourse statement. That compared with net profit of 222 million dirhams for the year-ago period. An analyst polled by Reuters forecasted net profit of 246 million dirhams for the quarter in a Reuters poll.

DIB, which became a majority owner of mortgage lender Tawmeel in 2010, said its core business of financing and investing assets and investment sukuk grew by 2 percent in the quarter. The emirate’s third-largest lender by market value booked additional provisions of 299 million dirhams in the quarter, it said, without providing any comparable figures.

Revenue for the quarter fell slightly to 1.23 billion dirhams compared with 1.28 billion dirhams for the same period last year, DIB said. The lender’s shares have risen 2.6 percent year-to-date on the Dubai bourse.

(Reporting by Dinesh Nair; Editing by Matt Smith)