Image Credit: Gulf News archive

Dubai : Dubai Islamic Bank (DIB) saw a 31 per cent drop in full-year net profits on doubled provisions for bad loans.

During the fourth quarter, the bank made a net profit of Dh80 million, adding to year-end profits of Dh1.2 million.

Revenues saw slight change, reported at Dh5.1 billion in 2009 from Dh5.2 billion in 2008. At year-end, customer deposits stood at Dh64.2 billion compared to Dh62.6 billion at the end of 2008. Provisions rose from Dh520 in 2008 to Dh818 in 2009, while its total assets were Dh84.3 billion.

Positive reaction

Meanwhile, the largest Islamic bank in Dubai declared a 20 per cent cash dividend. Its closing share price yesterday was Dh2.44, a 5 per cent jump as investors reacted positively to the tentative cash dividend.

"There was a drop in profits, of course, but that was expected. It was much less than what people were afraid of. Hopefully that could provide a good base for them for 2010 to build on," said Mohammad Yasin, chief executive of Shuaa Securities, brokerage division on Shuaa Capital.