DUBAI, April 11 Dubai Islamic Bank
(DIB), the United Arab Emirates' largest sharia-compliant
lender, reported a 4 percent increase in first-quarter net
profit on Tuesday.
The bank made 1.04 billion dirhams ($283.18 million) in the
three months to March 31, it said in a statement. This compares
with a profit of 1 billion dirhams in the corresponding period
SICO Bahrain had forecast the bank would make a net profit
of 908.1 million dirhams, while Arqaam Capital estimated a net
profit of 968.0 million dirhams.
Earnings were lifted by a 13 percent increase in total
income to 2.38 billion dirhams.
DIB's earnings growth had been powering ahead of most of its
local rivals in recent quarters, with the exception of the third
quarter of last year when earnings were dented by a rise in
The bank is targeting loan expansion in 2017 of between 10
to 15 percent, DIB Chief Executive Adnan Chilwan said in
January, compared with actual 2016 loan growth of 18 percent.
In Tuesday's statement, Chilwan said although pressure on
cost of funding may continue, it was expected to be relatively
muted in 2017.
During the quarter, impairment losses rose to 169 million
dirhams, compared with 118 million dirhams in the same period of
($1 = 3.6726 UAE dirham)
(Reporting by Tom Arnold, editing by Louise Heavens)