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DIB profit plunges in first quarter

Performance impacted by bank's 'ongoing policy of prudent provisioning'

Gulf News

Dubai:  Dubai Islamic Bank (DIB) said yesterday it posted a net profit of Dh200 million in the first quarter of this year, compared to Dh370.3 million in the same period of 2009.

Performance was impacted by the bank's "ongoing policy of prudent provisioning", as well as lower contribution levels from group companies during the period, DIB said in a statement.

Assets as of March 31 stood at Dh85 billion compared to Dh84.3 billion at the end of 2009. Customer deposits stood at Dh64.7 billion compared to Dh64.2 billion as of December 31.

The world's first Islamic bank reported a healthy financing-to-deposit ratio of 79 per cent, "providing a clear indication of the bank's healthy liquidity position", the statement said. The bank also reported a Basel II capital adequacy ratio of 17.9 per cent.

"As we enter a phase of both continued challenges but also increased global and regional economic stability, Dubai Islamic Bank remains focused on meeting the needs of its clients in the UAE and overseas," said Mohammad Ebrahim Al Shaibani, Director-General of The Ruler's Court of Dubai and Chairman of Dubai Islamic Bank.