Islamic banks’ profits soar 29.3% in H1

Assets of five listed banks up by 11.7% and deposits by 8.8%

Islamic banks listed on UAE bourses recorded an increase of nearly 29.3 per cent in their net income in the first half of 2011 while their total assets and deposits also recorded growth, according to their balance sheets.

From around Dh1.26 billion in the first half of 2010, the net profits of the five listed Shariah-compliant banks surged to nearly Dh1.63bn  in the first half of 2011, showed the report, published in the semi official daily 'Al Ittihad'.

The reports covered The Abu Dhabi Islamic Bank (ADIB), Dubai Islamic Bank (DIB), Emirates Islamic Bank (EIB), Sharjah Islamic Bank (SIB) and Ajman Bank.

Their combined assets swelled by around 11.7 per cent to Dh243.5bn in the first half of 2011 from Dh217.8bn in the first half of 2010 while their deposits grew by 8.8 per cent to Dh165.2bn from Dh151.8bn.

The reports showed the five banks recorded strong results in the second quarter of 2011 while Ajman Bank netted its first quarterly profit since it was established. The reports did not cover the remaining three Islamic banks, which are not listed.

They showed ADIB recorded the highest earnings of around Dh619.6 million in the first half of 2011 compared with Dh594.9 million in the first half of 2010.

DIB netted the second highest net income of Dh552 million compared with Dh501 million in the same period. SIB’s profits stood at Dh123.3m in the first half of 2011, up from Dh118.4 million in the first half of 2010.

The net earnings of EIB dived by about 81 per cent to Dh9.6m from Dh49.6m while Ajman Bank recorded its first quarterly profits since it was created in 2008, with an income of around Dh500,000 in the second quarter.

The report showed DIB had the highest assets at the end of the first half of 2011, standing at around Dh102.9bn against Dh90.1bn at the end of 2010. It was followed by ADIB with assets standing at nearly Dh72.3bn at the end of June, up by about 5.8 per cent from their level at the end of 2010.

EIB’s assets dipped to Dh25.6bn from Dh32.7bn in the same period while those of DIB grew to Dh18.3bn from Dh16.6bn. Ajman Bank’s assets leaped by 38 per cent to Dh4.4bn from Dh3.2bn.

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