Sunday, Jul 31, 2011
--Second-quarter net profit rises 10% year on year
--Result beats analyst expectations
--Customer deposits rise 22%
(This item was originally published Saturday.)
DUBAI (Zawya Dow Jones)--Dubai Islamic Bank (DIB.DFM), the U.A.E.'s largest Islamic lender, Saturday said its second-quarter net profit rose 10% year on year to 331 million U.A.E. dirhams ($90.2 million), beating analyst expectations, amid a sharp increase in customer deposits and despite increased provisions.
Cairo-based EFG Hermes had penciled in a second-quarter net profit of AED193 million for DIB, while investment bank HC Securities had seen it at AED202 million.
DIB, in an emailed statement, said customer deposits stood at AED77.6 billion as of June 30, a 22% increase from Dec. 31, while total assets rose 14% to AED102.9 billion during the same period.
First-half net profit was up 10% at AED552 million, while revenue for the period rose 20% year on year to AED1.8 billion, it added.
DIB said it raised provisions for impairment to AED500 million in the first half, from AED320 million in the corresponding period in 2010. Provisions for the second quarter rose to AED210 million compared with AED146 million a year ago.
"The bank's commitment to prudently manage its core operations, through effective cost controls and risk management, has delivered a strong set of results in the second quarter of the year," said Mohammed Ibrahim Al Shaibani, DIB's chairman and director general of The Ruler's Court of Dubai.
DIB's financing-to-deposit ratio stood at 71.3% as of June 30, while its capital adequacy ratio was 17.5%, the lender said.
DIB in September 2010 raised its stake in Dubai-based Islamic mortgage company Tamweel to 58.25% for AED375 million.
The lender's shares closed unchanged Thursday at AED2.00 on the Dubai bourse.
-By Dubai Bureau, Dow Jones Newswires; +9714 446-1686; djnews.dubai@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
31-07-11 0340GMT
