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28 March 2024

DIB Q2 proft drops 33% on higher provisions

First-half provisions jump 34% to Dh320m. (FILE)

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By Staff

Dubai Islamic Bank (DIB) on Sunday reported 33 per cent drop in net profit to Dh301m in the second quarter of 2010 against Dh450m in Q2 2009 on increased provisions.

Total income during the second quarter increased to Dh1.108bn compared to Dh1.079bn in the first quarter of 2010.

The first half profits plunged 39 per cent to Dh502m against Dh820m for the corresponding period last year.

Total assets stood at Dh83.8bn as of June 30, 2010 against Dh87.8bn for the same quarter last year, a drop of 4.5 per cent.

Customer deposits stood at Dh64.8bn compared to Dh64.2bn as of December 31, 2009.

Provisions at the bank increased in the second quarter to Dh145m against Dh135m for the same period last year.

The bank’s total provisions in the first half of 2010 reached Dh320 million against Dh239m in H1 2009, an increase of

The bank had a Basel II capital adequacy ratio of 18.5 per cent as of June 30, 2010.

The bank remains on a growth trajectory during the a period of ongoing challenges for the financial services sector worldwide, said Mohammed Ibrahim Al Shaibani, Director General of The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank.

“Despite conservative financing and provisioning policy, the retail and corporate banking division has registered positive growth, reflecting the strength and robustness of our business strategy during the current economic scenario,” he added.

In the second quarter, the bank introduced three new account variants to its product portfolio, which are tailored to meet the needs of difference customer segments.