Dubai Islamic Bank reports 4% rise in Q1 profit

Dubai Islamic Bank (DIB), the United Arab Emirates’ largest Islamic lender, posted a net profit of AED 1.042 billion in Q1 2017, up 4 percent year-on-year (YoY), the lender said in a statement on Tuesday.

Total income increased 13 percent YoY to AED 2.4 billion, while total assets stood at AED 186.9 billion, a 7 percent increase from the end of 2016.

The DFM-listed lender’s impairment losses amounted to AED 169 million, compared with AED 118 million in Q1 2016.

Customer deposits rose 12 percent to AED 137.2 billion, while the financing to deposit ratio stood at 88 percent, DIB said.

“Liquidity continues to be a key factor in driving growth and the last quarter has once again witnessed DIB’s ability to generate and mobilize deposits as needed,” DIB CEO Adnan Chilwan said in the statement.

“Though pressure may continue on cost of funding, it is expected to be relatively muted in 2017,” he added.