Dubai Islamic Bank (DIB), the largest sharia-compliant lender in the emirate, reported a six percent decline in second-quarter net profit on Tuesday though the results still beat analysts’ forecasts.
The bank had profit of AED310m ($84.4m) in the three months to June 30, up from AED330.56m in the prior-year period. First quarter profit stood at AED245m, it said in a bourse statement.
Two analysts polled by Reuters forecast net profit of AED246-AED267m.
DIB’s profit for the first half of the year increased marginally, hitting AED555m against AED552m in the first six months of 2011.
Impairments dropped 14.8 percent. Provisions stood at AED241m, down from AED210m last year.
“DIB has been able to achieve sustained profitability while continuing to strengthen its balance sheet,” Mohammed Ibrahim al-Shaibani, chairman of DIB, said in the statement.
Customer deposits stood at AED68.3bn at the end of June, up 5 percent from the AED64.8bn figure at December 31 2011.
DIB priced a five-year, $500m Islamic bond, or sukuk, in May, the first time the bank tapped debt capital markets since 2007.
Ahead of the results, the bank’s shares rose 1.1 percent on the Dubai bourse on Tuesday.
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