DUBAI: Emirates’ largest Shariah-compliant lender, posted a 59.6 percent jump in second-quarter net profit yesterday, aided by higher fee and investment income.
Beating analysts’ forecasts, the bank made Dh667.5m ($181.8m) in the three months to June 30, it said in a bourse filing, up from Dh418.2m in the corresponding period of 2013.
The average forecast of four analysts polled by Reuters was for a net profit of Dh627.3m.
The result continues a positive earnings reporting season for banks in the UAE, whose profits have jumped in recent quarters because of a growing domestic economy and improved asset quality.
At the end of last decade, corporate debt problems and a real estate market crash slashed banks’ profits.
Fellow Dubai lender Emirates NBD posted a 34.8 percent increase in its second-quarter net profit yesterday, while the majority of banks in Abu Dhabi recorded double-digit profit growth for the three months to June 30.
DIB’s earnings were boosted by a 34.5 percent increase in income from commissions, fees and foreign exchange, as well as hikes in revenue generated from property and other investments.
The lender, which completed the purchase of a 24.9 percent stake in Indonesian lender Bank Panin Syariah in June, was also aided by a 13.3 percent year-on-year reduction in loan impairments, which dropped to 160.3 million dirhams in the second quarter.
Customer deposits stood at 94.8 billion dirhams at the end of June, up 20 percent on the end of 2013, while total loans were 18 percent higher over the same timeframe at Dh66.1bn.
REUTERS
