Abu Dhabi Islamic Bank said on Sunday it planned to boost its capital base to help support future growth, after setting aside less cash for bad loans helped it post a 19.3 percent rise in fourth-quarter net profit. Banks in the United Arab Emirates have enjoyed a strong reporting period so far, with lenders recording higher profits on the back of robust local economic conditions.
They are also beginning to look at bolstering their reserves after a period of high lending growth. Dubai Islamic Bank sold a capital-boosting sukuk earlier this month, and Mashreq is awaiting shareholder approval before selling a version which boosts Tier 2, or supplementary, capital.