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Sat 6 Nov 2010 06:34 PM

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Dubai Islamic Bank Q3 net profit falls 10%

Chairman said bank continues to "adopt a conservative approach to financing"

Dubai Islamic Bank Q3 net profit falls 10%
EXPANSION: Bank aims to increase the number of branches in the UAE from 66 to 74 by year end.

Dubai Islamic Bank reported on Saturday a 10 percent drop in third quarter net profit from a year earlier, as conditions remained tough for the financial sector.

It also said it aimed to expand its retail branch network by the end of the year.

The bank, Dubai's third largest bank by market value, reported a net profit of $73.53 million for the 3 months ending September 30, it said in a statement, compared to a $81.7 million profit for the third quarter of 2009.

The bank also said it took provisions of $33.7 million in the third quarter of 2010, bringing its total provisioning for the first nine months of the year to $120.8 million.

The bank's total assets as of September 30 stood at $22.2 billion, down from $22.9 billion at December 31, 2009.

Chairman Mohammed al Shaibani in the statement said: "Dubai Islamic Bank continues to adopt a conservative approach to financing and provisioning."

Dubai Islamic Bank in September raised its stake in Islamic mortgage firm Tamweel to 57.33 percent, becoming the majority shareholder of the company.

The move is expected to help revive lending in Dubai's battered property market.

The statement said: "Upon the successful completion of the contractual arrangements with major shareholders, the bank will have a controlling interest in the company."

It added: "The move is expected to provide much needed impetus to Dubai's real estate financing sector."

The bank said it aims to increase the number of branches in the UAE, its home market, to 74 from 66 by the end of this year. (Reuters)

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