Sunday, 25 October 2009

DIB bad loans will not halt expansion

Dubai Islamic Bank (DIB) posted a 35 per cent drop in profits to Dh1.12 billion (US$305 million) for the first nine months of the year because of rising provisions against bad loans but is pressing ahead with expansion plans.

Banks in the Emirates have been forced to write off increasing amounts to bad loans because of the recession and decline in property prices, but they have so far avoided the widespread bankruptcies associated with subprime lending in more developed markets.

DIB’s provisions of Dh403m in the nine months to September were consistent with the bank’s “prudent and conservative approach”, the lender said in a statement.

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