Islamic banks report profit for 2008

Noor Islamic Bank, the newest Islamic bank in Dubai, posted a net profit of Dh511 million for its first full year of operation that ended on December 31, 2008.

While the total assets of the bank were at Dh21.8 billion, the total deposits touched Dh12.4bn as of December 31, 2008.

And Abu Dhabi Islamic Bank (Adib) yesterday reported a 9.8 per cent increase in its net profits in the first quarter of 2009 despite a surge in loan loss and investment impairment provisions.

From Dh244.5m in the first quarter of this year, the bank's net earnings grew to around Dh268.3m in the first quarter of 2008, it said in a statement.

A statement from Noor said it expected prudent growth in assets during the current year with greater emphasis on enhancing margins while ensuring strong focus on risk management fundamentals.

Operating expenses of Noor came to Dh780m including Dh247m the bank spent for the period prior to commencement of operations. Noor generated a net income of Dh231m from investments after distribution to investment account holders that include banks and other financial institutions.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Noor Islamic Bank, said the bank has been set up to offer world-class financial services products coupled with service levels on par with the world's leading banks.

He said: "In its first period of operations, the bank's performance has been underlined by strong financial results, significant organisational developments and unrivalled business success."

The bank has grown its presence since commencement of operations, opening branches in 14 locations across the emirates of Abu Dhabi, Dubai and Sharjah.

Tarad Mahmoud, Adib's Chief Executive, said: "We consider these results as satisfactory and they demonstrate our capability to continue to achieve stable growth in our operations despite present global challenges."

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