Dubai Islamic Bank, the UAE’s biggest bank complying with Muslim banking rules, said it plans to raise Dh3.6 billion from a share issue, as first-quarter profit increased.
The state-controlled lender will sell 988.4 million shares at Dh3.20 apiece, it said in a statement to the Dubai bourse on Wednesday. DIB’s board approved the start of the share sale process that will almost double share capital and support growth, it said.
DIB reported an 18 per cent rise in first-quarter profit to Dh1bn, the bank said. Profit attributable to shareholders advanced 7 per cent to Dh875m as impairments fell.
Lending surged more than 30 per cent in each of the past two years amid economic growth in the emirate. Lending rose 6 per cent in the three months through March to Dh103bn. The bank also raised $500m in March from the sale of five-year Islamic bonds to help fund expansion.
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