DIB profit rises 10% despite sharp

Dubai Islamic Bank (DIB) said yesterday its fiscal second quarter net profit rose 10 per cent on year to Dh331 million, though the lender's provisions increased during the quarter. "During the second quarter of 2011, the bank raised provisions for impairment amounting to Dh210 million compared with Dh146 million in the same period in 2010," DIB said in a statement. "The bank's commitment to prudently manage its core operations, through effective cost controls and risk management, has delivered a strong set of results in the second quarter of the year," said Mohammad Ebrahim Al Shaibani, Director-General of His Highness The Ruler's Court of Dubai and Chairman of Dubai Islamic Bank. DIB's financial results beat analysts' estimates, according to Zawya Dow Jones. EFG-Hermes had estimated a second-quarter net profit of Dh193 million for DIB, while HC Securities had seen it at Dh202 million. Article continues below The DIB statement said the bank's net profit for the fiscal first half rose 10 per cent year-on-year to Dh552 million. Marwan Shurrab, Vice-President at Dubai-based GulfMena Investments told Gulf News that DIB's second quarter net profit looked "good". DIB's shares on the Dubai Financial Market had closed on Thursday at Dh2. The bank's total assets as of June 30, stood at Dh102.9 billion compared to Dh90.1 billion at the end of last year, an increase of 14 per cent, said DIB. As of June 30, the bank's customer deposits stood at Dh77.6 billion compared to Dh63.4 billion as of December 31, last year. DIB's total revenue in the first half of 2011 was Dh1.8 billion compared to Dh1.5 billion in the same period last year, an increase of 20 per cent. In the second quarter of 2011, the bank's total revenue grew 13 per cent compared with the same period last year. Looking ahead to the second half of 2011, DIB said it will continue to expand its network across the UAE with eight new branches scheduled to open later in the year.