Dubai: Bank of London and The Middle East (BLME), the Nasdaq Dubai listed Islamic Bank from UK on Wednesday reported a net profit of £4 million (Dh24.39 million, $6.6 million) in the first half of 2014, up from £1 million during the same period last year.

The bank’s operating profit before tax for the first six month of the year was up 253 per cent at £5.1 million compared to the same period last year.

“The Group’s half year performance demonstrates the viability of our business model. BLME’s Corporate Banking division continues to service the UK mid-market’s financing needs while our Wealth Management arm focuses on the GCC region,” said Adel Al Majed, Chairman of BLME.

The Group’s operating profit before impairment charges were up by 177 per cent in the first half of 2014. Total assets have increased 13 per cent in the first half this year to £1.28 billion, up 13 per cent, largely driven by growth from corporate banking.

Total consolidated operating income increased, with net margin income up by 55.5 per cent, fuelled by the well established property finance and leasing businesses.

The bank’s net fee income increased by 84 per cent to £2.2 million, reflecting a more mature product offering, and increased earnings diversification. While the bank’s treasury succeeded in diversifying it’s liability base with 47 per cent of deposits coming from customer deposits, the bank reduced its reliance on short-term funding sources. Deposits with maturities of more than one year now account for 34 per cent of total deposits, up from 20 per cent a year earlier.

During the first six months of this year the bank’s operating income up 32 per to £33.4 million compared to £25.3 million for the same period last year. While the bank’s balance sheet increased from £1.1 billion to £1.3 billion, its capital adequacy ratio remains within the impending Basel III standards.

The bank said it is confident of paying its first dividend in 2016. “I am confident of BLME’s ability to deliver sustainable results consistently and grow our business in the medium and long terms through the provision of competitive and innovative financial products to our target markets.” Humphrey Percy, CEO of BLME, said.