Dubai Islamic Bank Q2 Profit Down 6 Pct, Tops Estimates

Dubai Islamic Bank (DIB), the largest sharia-compliant lender in the emirate, reported a 6-percent decline in second-quarter net profit on Tuesday though the results still beat analysts’ forecasts.

The bank had profit of 310 million dirhams ($84.4 million) in the three months to June 30, up from 330.56 million dirhams in the prior-year period. First quarter profit stood at 245 million dirhams, it said in a bourse statement.

Two analysts polled by Reuters forecast net profit of 246 million dirhams and 267 million dirhams.

DIB’s profit for the first half of the year increased marginally, hitting 555 million dirhams against 552 million dirhams in the first six months of 2011.

Impairments dropped 14.8 percent. Provisions stood at 241 million dirhams, down from 210 million dirhams last year.

“DIB has been able to achieve sustained profitability while continuing to strengthen its balance sheet,” Mohammed Ibrahim al-Shaibani, chairman of DIB, said in the statement.

Customer deposits stood at 68.3 billion dirhams at the end of June, up 5 percent from the 64.8 billion dirhams figure at December 31 2011.

DIB priced a five-year, $500 million Islamic bond, or sukuk, in May, the first time the bank tapped debt capital markets since 2007.

Ahead of the results, the bank’s shares rose 1.1 percent on the Dubai bourse on Tuesday.

Reuters