Dubai Islamic Bank (DIB), the largest sharia-compliant lender in the emirate, is in talks with an Islamic bank in Indonesia to take a 40 percent stake, DIB's chief executive said on Thursday.
Adnan Chilwan told reporters that DIB hoped to conclude a deal before the end of the year and that it would pay for the purchase using its own cash reserves.
He declined to name the acquisition target.
Dubai Islamic Bank earlier posted a doubling in first-quarter net profit on Thursday.
The bank made AED636.6 million ($173.3 million) in the opening three months of the year, it said in a statement to the stock exchange. This was up from AED301.7 million in the corresponding period of 2013.
The average forecast of four analysts polled by Reuters was for a net profit in the period of AED506.1 million.