ADIB's net profit jumps

21 Jul, 2014

Abu Dhabi Islamic Bank (ADIB), the largest Shariah-compliant lender in the emirate, beat analysts' estimates on Sunday as it posted a 22.5 percent jump in second-quarter net profit as core business income boosted revenues.
The lender, which in May got regulatory approval to purchase much of Barclays' retail operations in the United Arab Emirates, made a net profit of 454.8 million dirhams ($123.8 million) in the three months to June 30 compared to 371.4 million dirhams in the same period of 2013, a statement said.
Three analysts polled by Reuters earlier this month forecast an average net profit of 406 million dirhams.
ADIB cited a 13.9 percent increase in net revenue, which climbed to 1.08 billion dirhams, for the increase in profit.
"As was the case in the first quarter of the year, it is noteworthy that the record quarterly performance reflects the sustainable strength of our core banking businesses," chief executive Tirad al-Mahmoud said in the statement, adding it wasn't just relying on lower provisioning for higher profits.
ADIB is one of the banks on the creditor committee for Amlak Finance, which said earlier this month it had made a new offer to strike a deal on debt worth $2.7 billion and solve the last major hangover from the property crash.

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