DIB's first quarter net up 11pc, hits $60m
Dubai, April 30, 2011
Dubai Islamic Bank (DIB), the leading Islamic lender in the UAE, reported that its net profit for the first quarter of 2011 rose to Dh222 million ($60.43 million), marking an 11 per cent gain compared to same period of 2010.
EFG Hermes had estimated an average quarterly net profit of Dh310 million for Dubai's third-largest bank by market value.
DIB reported a full-year profit of Dh806 million for 2010 in March. Fourth quarter profit slipped 62 per cent but still beat analysts' forecats.
'These positive results -- including growth in net profits, assets and customer deposits -- reflect the resilience of Dubai Islamic Bank during this period of increasing domestic economic expansion,' DIB's chairman Ibrahim Al-Shaibani, who also serves as director of Dubai's ruler's court, said in a statement.
Banks in the UAE were forced to take on record provisions for bad loans in the wake of the global financial crisis, which hurt profits and constrained lending.
The lender is thought to have suffered from heavy exposure to investments in Dubai's battered real estate sector.
Government-controlled DIB became the majority shareholder of troubled Islamic mortgage provider Tamweel in September last year after it raised its stake in the firm to 57.33 per cent.
The bank's assets stood at Dh100.4 billion, an 11 per cent increase from the previous quarter, a statement said. – Reuters