Noor Islamic Bank recorded an operating profit for the first time last year as the lender's assets rallied after the global financial crisis, its deputy chief executive said.
Financial issues within the emirate's network of state-controlled companies is a potential threat to further strong performance this year.
Nonetheless, sufficient provisions have been built by the bank against its exposure to the Government and its related firms in the event of more restructuring, said Ahmed Aljanahi, deputy chief executive of the bank.
"This is our third year of performance and for the first time we performed an operating profit which is normal for a start-up," he said.
It is targeting growth of 25 per cent in its balance sheet this year from income linked to loans and syndication, said Mr Aljanahi.
This article has been altered to reflect changes to the inaccurate statement that Noor Islamic Bank is a Dubai Government-owned bank. In fact, the lender is only partly owned by the Dubai Government. It is 95 per cent owned by Noor Investment Group and five per cent owned by Emirates Investment Authority, a state-owned investment fund. Noor Investment Group is 25 per cent owned by the Investment Corporation of Dubai, the investment arm of the Dubai Government, and 25 per cent by Dubai Holding, the conglomerate owned by Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai. A total of 50 per cent of the group is owned by high net worth individuals from the UAE business community.
