Strong net financing income offsets more than doubling of impairment charges
Dubai Islamic Bank quarterly profit up 14 per cent
Dubai Islamic Bank, the emirate’s largest Sharia'a-compliant lender, said that its net income rose 13.8 per cent in the second quarter thanks to strong growth in financing assets and customer deposits, even as impairments more than doubled.
Net profit attributable to owners of the bank increased to Dh1.1 billion for the three months to the end of July, compared to Dh929 million in the same period last year. Net financing income rose 18 per cent to Dh1.9bn for the quarter, although income from commissions, fees and foreign exchange income fell 7.7 per cent over the same period. Impairment charges meanwhile rose 156 per cent to Dh187m from Dh73m in the same period the previous year.
The Egyptian investment bank EFG-Hermes forecast a profit of Dh979 for the bank's profit in the second quarter while Arqaam Capital forecast a profit of Dh928.94 m.