DUBAI: Dubai Islamic Bank, the emirate's largest sharia-compliant lender, reported a flat third-quarter net profit on Sunday, beating analysts' forecasts, despite a big jump in provisioning.
The bank made 298.5 million dirhams ($81.3 million) in the three months to Sept. 30, it said in a filing to the Dubai bourse. This compares with a profit of 298 million dirhams in the corresponding period last year.
Two analysts polled by Reuters forecast DIB would make a quarterly net profit of 229 million and 296 million dirhams, respectively.
Quarterly profits were steady despite a 43 percent jump in provisions, with impairments worth 309 million dirhams against 217 million dirhams in the same period a year ago.
"The performance of DIB in the third quarter of 2012 was notable for delivering strong results while continuing with its conservative approach to provisioning," Mohammed al-Shaibani, chairman of DIB, said in a separate statement.
Net profit for the first nine months of 2012 was also flat to the corresponding period of last year at 854 million dirhams versus 850 million dirhams.
The bank's shares didn't trade on Sunday but have risen 4.1 percent year-to-date, underperforming the Dubai bourse which has advanced 19.6 percent.
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