Abu Dhabi Islamic Bank warns earnings for rest of 2012 could be hit by euro crisis
Abu Dhabi Islamic Bank posted a 2.3 percent rise in quarterly net profit on Wednesday and warned earnings for the rest of 2012 would be subdued by euro zone uncertainty and regulations being introduced in the UAE.
The largest sharia-compliant lender by market value in the UAE had second-quarter net profit of AED322.6m ($87.8m) in the three months to June 30. That is up from AED315.2m in prior-year period, it said in a statement.
The results beat estimates of two analysts who forecast profit of AED314m and AED294m in a Reuters poll.
Net profit for the first half of the year stood at AED629.9m, versus AED619.8m a year ago, the statement said.
"The continuation of the uncertainty prevailing in the euro zone and a meaningful global economic recovery, when combined with the increasingly enhanced regulatory regime in the UAE ... means we continue to anticipate limited quality credit opportunities and a resultant subdued growth in profits for the balance of 2012," Tirad Mahmoud, chief executive of ADIB, said.
The bank allocated AED186.6m in provisions in the second quarter, down from the AED235.8m a year-ago.