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Sun 4 Aug 2013 02:24 PM

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Dubai's DIB posts $113m net profit in Q2

Dubai Islamic Bank beats analysts' estimates in second quarter of the year

Dubai's DIB posts $113m net profit in Q2
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Shares in Dubai Islamic Bank (DIB), the largest sharia-compliant lender in the emirate, moved narrowly on Sunday after the bank's second-quarter earnings beat analysts' estimates by a large margin - one sign that the stock market's upward momentum may be easing.

The bank made a net profit attributable to shareholders of AED418m ($113.9m) in the three months to June 30, it said in a statement, up from AED310m in the corresponding period last year.

Analysts at EFG Hermes and Deutsche Bank had forecast a second-quarter net profit of AED361m and AED306m respectively.

The stock rose in the opening minutes but by the early afternoon it was flat at 3.57 dirhams. It faces major technical resistance at the June peak of 3.66 dirhams, which it tested and failed to break last month. It is now up 78 percent year-to-date.

Total revenues for the second quarter were AED1.287bn against AED1.265bn a year earlier.

Assets totalled AED111.14bn at the end of June, compared to AED98.7bn at the end of December.

In an interview in May, officials at the bank told Reuters that they had dealt with most of their bad loans, which soared after the collapse of the local real estate market in 2009-2010.

DIB is in the process of fully acquiring Tamweel through a share swap. It already owned 58.2 percent of the sharia-compliant mortgage lender.

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