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Abu Dhabi, UAESunday 18 November 2018

Dubai Islamic Bank Q2 net profit rises 14% on core businesses income growth

DIB's net profit of Dh1.21bn beats analysts' estimates

Dubai Islamic Bank second-quarter profit rises 14 per cent to Dh1.21bn. Courtesy Dubai Islamic Bank 
Dubai Islamic Bank second-quarter profit rises 14 per cent to Dh1.21bn. Courtesy Dubai Islamic Bank 

Dubai Islamic Bank, the emirate's biggest Sharia-compliant lender, reported a 14 per cent increase in second quarter net profit, beating analysts' forecast, thanks to higher core business income.

DIB's net profit attributable to equity owners in the three months to June 30 rose to Dh1.21 billion from the year-earlier period, it said on Wednesday in a statement to the Dubai Financial Market, where its shares are traded. It beat analysts' median estimate of Dh1.09bn, according to a Bloomberg poll. Total revenues for the quarter grew 15.7 per cent to Dh2.88bn.

This year "so far is panning out as planned with expansion across all businesses leading to core income growth as the key performance indicators remain aligned with the guidance," Adnan Chilwan, chief executive of DIB, said. "Efficiency buildup remains a focus area."

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The Islamic lender was one of the top picks in the Egyptian investment bank EFG-Hermes's second-quarter bank outlook because of a "favourable mix of growth, valuations and profitability". It estimated DIB profit for the quarter of Dh1.08bn.

"With international operations getting fully aligned with the DIB Group agenda, we expect the non-UAE contribution to increase over the years as we continue to spread our proven growth strategy across other markets," Mr Chilwan said.