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Wed 31 Oct 2007 10:29 AM

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DIB makes smallest quarterly profit in a year

Dubai Islamic Bank sees Q3 net income rise 25.2% to $106.2mn, missing forecasts.

DIB makes smallest quarterly profit in a year
Dubai Islamic Bank operates 43 branches in the UAE.

Dubai Islamic Bank (DIB), the Gulf's third-largest sharia-compliant lender by market value, made its smallest quarterly profit in a year in the third quarter, missing analysts' forecasts.

Net income in the three months to September 30 - after depositors' share - rose 25.2% to 390 million dirhams ($106.2 million), compared with 311.57 million in the year-earlier period, Reuters calculated based on nine month data from the bank.

Forecasts for DIB's third-quarter profit ranged from 440 million dirhams to 441.06 million in a Reuters survey last month.

Net income in the nine months to September 30 almost doubled to 1.9 billion dirhams, from 1.02 billion in the year-earlier period, the bank said in a statement.

"The bank continues to aggressively expand its branch network in the UAE," Mohamed Khalfan bin Kharbash, the bank's chairman was quoted as saying.

The bank operates 43 branches in the UAE, the second-largest Arab economy where businesses are expanding due in part to record oil prices. The 37-year-old lender did not give any cost details.

"The move reflects DIB's strategy to invest in technology and continuously upgrade its IT infrastructure," Kharbash said.

Customer deposits rose 39% to 57.5 billion dirhams in the year to September 30, the bank said. Financing and investing activity climbed 51% to 48.3 billion dirhams and assets grew 39% to 74.1 billion, it said.

Shares of DIB have surged 47% this year, the second-best performance after Kuwait Finance House among the Gulf's six biggest Islamic lenders by market value.

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