DUBAI: Abu Dhabi Islamic Bank, the largest Shariah-compliant lender in the emirate, met analysts’ expectations as it posted a 20.4 percent rise in first-quarter net profit yesterday, with higher lending cited for the increase.
The lender, which said earlier this month it was buying much of Barclays’ retail operations in the United Arab Emirates, made a net profit of Dh409.5m ($111.5m) in the three months to March 31. That was up from Dh340.1m in the prior-year period, it said in a bourse statement.
The results were in line with the average estimate of three analysts, who forecast profit of Dh411m.
ADIB said April 6 it would buy the retail business of the British lender for Dh650m, subject to regulatory approval.
ADIB attributed its profit hike in the first quarter to an 18.1 percent year-on-year increase in lending, with total loans standing at Dh63.8bn at the end of March 2014.
Bank lending across the UAE banking system has been buoyant in recent months as the economy rebounds from a real estate crash and debt problems at a number of Dubai government-related entities — December saw the fastest lending growth in nearly four years, before dipping slightly in January, central bank data showed.
Over the same timeframe, deposits grew 21.4 percent to Dh77bn.
The profit increase came despite a 16.7 percent increase in credit provisions to Dh216.4m dirhams in the three months to March 31. Reuters
