Dubai Islamic Bank Q3 net profit down 9.9 per cent

The bank's profit in the three months ended September fell to Dh876.3 million from Dh972.1m, while impairment charges rose to Dh113.5m from Dh64.9m.

Dubai Islamic Bank is the third Dubai-based lender to report weaker earnings growth this quarter after Emirates NBD and Mashreq. Satish Kumar / The National

Dubai Islamic Bank said its profit slid 9.9 per cent as a rise in cost of funding and money set aside to cover band debt outweighed an increase in income from financing.

The bank’s profit in the three months ended September fell to Dh876.3 million from Dh972.1m in the same period last year.

The cost of funding, which includes mostly money the bank pays on deposits as well as Islamic bonds, rose to Dh483.4m versus Dh279.1m in the corresponding period last year. Impairment charges rose to Dh113.5m from Dh64.9m.

Income from Islamic financing and investing transactions rose to Dh1.64 billion from Dh1.43bn.

“Despite somewhat difficult times for the global economy, the UAE economy and banking sector continues to remain resilient with healthy profitability and strong capitalisation levels across the industry,” said Mohammed Al Shaibani, the bank’s chairman.

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