Thursday, 2 February 2012 at 10:46, Bloomberg
DIB, which owns a 58pct stake in Tamweel, guaranteed Islamic bonds sold by the mortgage lender in January. (AFP)
Dubai Islamic Bank PJSC, the United Arab Emirates’ biggest bank complying with Shariah rules, posted a 25 per cent rise in full-year profit, meeting estimates.
Net income was Dh1.01 billion ($275 million), the bank said in a statement to the Dubai bourse today. The lender had a profit of Dh806.5m a year earlier, according to data compiled by Bloomberg. The median estimate of four analysts was for a profit of Dh1.01bn, according to the data.
UAE banks are recovering after the global financial crisis slowed lending, hurt investment banking and led to an increase in bad loans. Abu Dhabi Commercial Bank PJSC said fourth-quarter profit climbed 39 percent in the fourth-quarter, and First Gulf Bank PJSC reported an 18 per cent rise in the same period. Emirates NBD PJSC, the UAE’s biggest bank by assets, is expected to report a 56 per cent drop in fourth- quarter profit, according to data compiled by Bloomberg.
Dubai Islamic, which owns a 58 per cent stake in Tamweel PJSC, guaranteed Islamic bonds sold by the mortgage lender in January. The yield on Tamweel’s 5.154 per cent sukuk due January 2017 declined 24 basis points since January 17 to 5.5 per cent yesterday.
The shares climbed 4.3 per cent to Dh2.19 yesterday, taking its gain this year to 13 per cent. The Dubai Financial Market Financial Banks Index advanced 6 per cent this year.
Dubai Islamic plans to pay a cash dividend of 15 per cent for last year, it said today.
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