Dubai Islamic Bank 1Q Net Pft Up 11% Despite Revenue Slowdown

Tuesday, May 01, 2012

(This story was originally published Monday.)

DUBAI (Zawya Dow Jones)--Dubai Islamic Bank (DIB.DFM) on Monday said first-quarter net profit rose 11% on higher deposits and despite a slowdown in revenue growth.

The bank's first-quarter net profit increased to 245 million U.A.E. dirhams ($66.7 million), from AED222 million in the same period in 2011. The result is in line with the forecast of EFG Hermes who had predicted AED245 million in quarterly net profit.

The shariah-compliant lender said the profit increase was due to growth in all its core operations. The bank's deposits grew 5% to AED68.1 billion from the end of 2011.

However, DIB's revenue fell to AED1.23 billion during the first quarter from AED1.28 billion in the first quarter of 2011. The bank said it took additional provisions of AED299 million during the quarter, without providing any further detail. The lender's assets stood at AED92.5 billion.

DIB opened 3 branches during the quarter, bringing its UAE network to 74.

The bank's shares last traded Thursday at AED1.99.

-By Nicolas Parasie, Dow Jones Newswires, +9714 446 1681, nicolas.parasie@dowjones.com

(END) Dow Jones Newswires

01-05-12 0357GMT