Dubai Islamic Bank Q2 profit up almost 14%

The lender’s profit growth came on the back of strong income from Islamic financing

Dubai Islamic Bank (DIB), the United Arab Emirates’ largest sharia-compliant lender, posted an almost 14 per cent increase in second-quarter net profit, above analysts forecasts, on the back of strong income from Islamic financing.

The bank made Dhs1.06bn ($288m) in the three months to June 30, it said in a statement. This compares with a profit of Dhs928.9m in the corresponding period of 2016.

EFG Hermes had projected a net profit of Dhs979m and Arqaaam Capital had forecast Dhs972m as net profit for Dubai Islamic.

Earnings were lifted by an 18 per cent increase in net income from Islamic financing, however income from fees, commissions and foreign exchange dropped 7.7 per cent.

During the quarter, net impairment charges more than doubled from a year earlier to Dhs186.5m.