Dubai Islamic Bank leads trading on emirate's bourse

19 May 2013

Share swap allowed bank to fully acquire Islamic home finance provider Tamweel

Dubai Islamic Bank’s (DIB) share price went up 12.8 per cent compared with last week, making it the leader in trade value on the Dubai Financial Market (DFM) General Index over the week ending on 16 May.

The bank announced that week it had completed its share swap with Tamweel, which will allow DIB to fully acquire the Islamic home finance provider.

DIB’s stock price climbed 1.28 per cent on 16 May, closing at AED3.17, a day after US ratings agency Moody’s affirmed its long-term issuer ratings at Baa1, outlook stable.

“The confirmation of DIB’s ratings reflects the recent capital injection and our expectation that asset quality pressure will ease which, in turn, should support profitability,” said the agency in a press release.

In April, the bank repaid an AED3.75bn loan ahead of maturity. It had received the loan from the UAE Finance Ministry in 2008.

The bank’s profits grew 17 per cent over the first quarter of 2013 to AED301.7m.

 

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