ADIB Q2 net profit rises 10.5 percent

Abu Dhabi Islamic Bank (ADIB) posted a 10.5 percent rise in second-quarter net profit, beating analysts' estimates, as fee income boosted revenues. Banks in the United Arab Emirates are seeking to expand their income from sources other than interest as tough competition squeezes profit margins in the lending market.
Abu Dhabi's largest sharia-complaint bank, ADIB made a net profit of 502.6 million dirhams ($136.8 million) in the quarter ending June 30, compared with 454.8 million dirhams in the same period a year ago, it said in a statement. Three analysts polled by Reuters this month forecast an average net profit of 484.23 million dirhams. ADIB's group revenues in the second quarter touched 1.25 billion dirhams, up 15.8 percent over the prior-year period. Fee income rose 19.7 percent year-on-year, the statement said without giving actual figures.