Dubai Islamic Bank Q1 net profit rises 34%

Dubai Islamic Bank  (DIB) reported a 33.9 per cent increase in first-quarter net profit on Wednesday, as income from Islamic financing and investment rose and bad loan losses eased.

Beating analysts' forecasts, the bank made a net profit attributable to shareholders of Dh816.7 million  ($222.4 million) in the three months to March 31, it said in a statement, up from Dh610.1 million in the corresponding period of 2014.

The results beat two analysts' estimates. EFG Hermes forecast Dubai Islamic Bank would make a quarterly net profit of Dh751.21 million, while HSBC forecast this would be Dh677 million.

Income from Islamic financing and investing transactions grew by 24.2 per cent from the year earlier period, while commissions, fees and foreign exchange income grew by 18.8 per cent over the same period.

The bank has also benefited in recent quarters from a drop in impairment charges, reflecting strength in the domestic economy.

That trend continued in the first quarter as impairment losses narrowed to Dh136 million, down by 30 per cent from the same period of last year.

DIB happy with capital base, may look again later this year: CEO

Dubai Islamic Bank is happy with its current stock of capital but could look again at raising its reserves in the second or third quarter of this year, its chief executive said on Wednesday.

Adnan Chilwan told a webcast that the bank had no plans to raise its current 17 per cent capital adequacy ratio, a key indicator of the bank's health.

However, it could look at the level again in the second or third quarter and, if it thought that was required, might raise additional Tier 1 (core) capital or Tier 2 (supplementary) capital, he said.

The bank sold a $1 billion capital-boosting sukuk issue in January.
 

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