Abu Dhabi Islamic Bank 1Q Net Pft Flat; Revenue, Provisions Rise

Monday, May 14, 2012

(This story was originally published Sunday.)

DUBAI (Zawya Dow Jones)--Abu Dhabi Islamic Bank Sunday reported a 0.9% on year rise in first-quarter net profit to 307.3 million U.A.E. dirhams ($83.7 million) as revenues grew alongside provisions and impairments.

ADIB's first-quarter net revenue rose 7.7% compared to the same period last year to AED870.8 million, the bank said in a statement.

But total credit provisions and impairments for the first quarter were AED186.1 million, the bank said, compared to AED159.6 million in last year's first quarter.

Tirad Mahmoud, ADIB's chief executive, said the bank was keeping close watch over risks and focusing on credit quality as it tried to become a "top-tier" U.A.E. bank. He was cautious about the profit outlook for the remainder of this year.

"The continuation of the global financial crises and uncertainty prevailing in the eurozone, when combined with an increasingly enhanced regulatory regime in the UAE, means that we continue to anticipate limited quality credit opportunities and a resultant subdued growth in profits for the balance of 2012."

ADIB shares closed -1% at AED3.10 Sunday.

-By Asa Fitch, Dow Jones Newswires, +971 4 446-1685, asa.fitch@dowjones.com

(END) Dow Jones Newswires

14-05-12 0347GMT