Dubai Islamic Bank’s Q3 Profit Flat

Dubai Islamic Bank, the emirate’s largest sharia-compliant lender, reported a flat third-quarter net profit on Sunday, beating analysts’ forecasts, despite a big jump in provisioning.

The bank made Dhs298.5 million ($81.3 million) in the three months to September 30, it said in a filing to the Dubai bourse. This compares with a profit of Dhs298 million in the corresponding period last year.

Two analysts polled by Reuters forecast DIB would make a quarterly net profit of 229 million and Dhs296 million, respectively.

Quarterly profits were steady despite a 43 per cent jump in provisions, with impairments worth Dhs309 million against Dhs217 million in the same period a year ago.

“The performance of DIB in the third quarter of 2012 was notable for delivering strong results while continuing with its conservative approach to provisioning,” Mohammed al-Shaibani, chairman of DIB, said in a separate statement.

Net profit for the first nine months of 2012 was also flat to the corresponding period of last year at Dhs854 million versus Dhs850 million.

The bank’s shares didn’t trade on Sunday but have risen 4.1 per cent year-to-date, underperforming the Dubai bourse which has advanced 19.6 per cent.