Dubai Islamic Bank reports an 11% increase in first quarter net profit

Dubai Islamic Bank booked a net profit of AED245m (USD66.7m/EUR50.4m) in the first three months of the year, up 11% from the AED222m recorded in the same period in 2011, the Dubai-based lender said on Sunday.

The bank’s revenue eased to AED1.23bn in the first quarter from AED1.28bn in the first three months of 2011. The lender’s core business saw continued growth in the period, with income from financing and investing assets and investment sukuks rising by 2%. Dubai Islamic Bank booked additional provisions of AED299m in the period, continuing to boost its balance sheet.

Customers deposits at the bank amounted to AED68.1bn at the end of March, up from AED64.7bn at the end of 2011. Total assets added up to AED92.5bn as of 31 March.

The bank’s liquidity position remained strong, with its financing-to-deposit ratio stable at 77% at the end of March. The lender’s capital adequacy ratio under Basel II was 18.2% as of 31 March.

During the quarter to March, the bank opened three branches, which brought the total number of branches across the UAE to 74. The bank also launched its portal Al Islami Business Online, offering more than 75 services.