Emirates Islamic Bank Q3 net plunges 82%

Emirates Islamic Bank (EIB) profits plunged 82.6 per cent to Dh6.5 million during third quarter this year compared to Dh37.37 million for the corresponding period last year on higher impairment charges.

According to the bank’s financial statement sent to Dubai Financial Market showed that its total income rose to Dh439 million from Dh395.75m, an increase of 11 per cent.

The bank's expenses remained static at Dh100 million.

The bank profits in the first ninth months plunged 66 per cent to Dh41.66m against Dh123.23m for the same period last year. its nine-month earnings per share fell to Dh0.03 from Dh0.09 last year.

Its total assets increased to Dh31.58 billion at the end of September 30, 2010 compared to Dh25.28bn at the December 30, 2009.

The bank said it allocated Dh130 million in impairment loss on investment property under development during the third quarter.

EIB’s financial statement showed that its Emirates Islamic Financial Brokerge posted Dh2.57 million loss while Ithmar Real Estate Development recorded Dh3.32m profit in the first nine months.

Its capital adequacy ratio (CAR) increased marginally to 17.70 per cent during the 9-month period.

Emirates NBD, EIB's holding company, denied recent media reports that the bank is holding talks with the bank to take over Dubai Bank.

"There are no talks with regards of an acquisition of Dubai Bank by Emirates Islamic Bank," Emirates NBD CEO Rick Pudner told a conference call this week.

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