(MENAFN - Khaleej Times) Dubai Islamic Bank, or DIB, on Sunday announced that its net profit increased to Dh854 million for the first nine months of the year.
The lender bank reported a net profit at Dh850 million for the January-to-September period last year. For the third quarter of 2012, the bank reported a net profit of Dh298.5 million, maintaining its profitability over the same period last year.
The bank's third quarter profit beats forecasts from two analysts polled by Reuters, who said DIB would make between Dh229 million and Dh296 million.
"The performance... was notable for delivering strong results while continuing with its conservative approach to provisioning, as demonstrated by increases in key balance sheet ratios," Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler's Court of Dubai and Chairman of the bank, said in a statement.
The bank's total assets as at September 30, 2012, stood at Dh93.7 billion, compared to Dh90.6 billion on December 31, 2011, an increase of 3.5 per cent. The bank's operating profit, such as net profit before impairment losses, increased by 9.6 per cent in the third quarter of 2012 compared with the corresponding period in 2011. The third quarter of 2012 saw DIB continue with its conservative approach to provisioning, with Dh309 million set aside for impairments, compared to Dh217 million in the same quarter of 2011, an increase of 43 per cent. For the first nine months of 2012, it made provisions of Dh849 million, compared to Dh718 million over the same period of 2011, highlighting the management's focus to continuously strengthen the balance sheet of the bank.
Growth in customer deposits, which increased by 3.3 per cent to Dh66.9 billion as at September 30, 2012, further demonstrates the bank's healthy liquidity position that continues to be the best in the UAE banking sector with a financing to deposit ratio of around 82 per cent.