By: Bedour El-Raie

Dubai – Mubasher: Dubai Islamic Bank (DIB) surged 6.68% after an hour and half of trading on the Dubai Financial Market (DFM) on Wednesday, reaching its highest level since 29 December. This follows the bank’s announcement of its financials for the first quarter of the year.

DIB reported a net profit growth of 34%, reaching AED 850.4 million ($231.5 million) in Q1-15 compared to AED 636.6 million ($173.3 million) in Q1-14.

By 11:40am UAE time, DIB’s turnover reached AED 68 million as 10.5 million shares changed hands, boosting the banking sector to a 1.68% rise.

The benchmark DFMGI grew 1.96% to 3,903.95 points.

Market analyst Waddah Taha said that DIB’s strong financials pushed the DFMGI upwards during the first hour of trading, after the stock was suspended, pending the board’s meeting.

First quarter financials are optimistic, particularly after DIB’s announcement, Taha told Mubasher, affirming that anticipation for Q1 financials will have a major impact on UAE markets in the coming period, amid varying expectations for results.

Following today’s rise, the DFM may see more gains in the coming period, Taha added, noting that the index is targeting the level of 4,500 points.

In the meantime, turnover on the DFM reached AED 835.245 million as 507 million shares changed hands.

DIB previously reported a 63% surge in its annual profits, reaching AED 2.8 billion compared to AED 1.72 billion in 2013. The bank’s shareholders approved on 1 March a 40% cash dividend, amounting to 40 fils per share and totalling AED 1.58 billion.

DIB’s capital amounts to AED 3.95 billion divided on 3.95 billion shares at par value of AED 1 per share.

DIB recently announced plans to buy the remaining 13.5% stake in Dubai-listed Tamweel. The bank said it offered a price of AED 1.25 per share to be paid in cash. The month-long offer period began on 1 April.

The DFM-listed bank’s shareholders approved in early March a 40% cash dividend, amounting to 40 fils per share at a total value of AED 1.58 billion.

EFG Hermes recently set its fair value of DIB’s stock at AED 8.40 with a ‘neutral’ recommendation.

Translated by: Nada Adel Sobhi