Dubai Islamic Bank shares move narrowly after Q2 profit beat

Shares in Dubai Islamic Bank (DIB), the largest sharia-compliant lender in the emirate, moved narrowly on Sunday after the bank’s second-quarter earnings beat analysts’ estimates by a large margin – one sign that the stock market’s upward momentum may be easing.
The bank made a net profit attributable to shareholders of 418 million dirhams ($113.9 million) in the three months to June 30, it said in a statement, up from 310 million dirhams in the corresponding period last year.
Analysts at EFG Hermes and Deutsche Bank had forecast a second-quarter net profit of 361 million dirhams and 306 million dirhams respectively.
The stock rose in the opening minutes but by the early afternoon it was flat at 3.57 dirhams. It faces major technical resistance at the June peak of 3.66 dirhams, which it tested and failed to break last month. It is now up 78 percent year-to-date.
Total revenues for the second quarter were 1.287 billion dirhams against 1.265 billion a year earlier.
Assets totalled 111.14 billion dirhams at the end of June, compared to 98.7 billion at the end of December.
In an interview in May, officials at the bank told Reuters that they had dealt with most of their bad loans, which soared after the collapse of the local real estate market in 2009-2010.
DIB is in the process of fully acquiring Tamweel through a share swap. It already owned 58.2 percent of the sharia-compliant mortgage lender.

Source: Reuters