By: Mahmoud Gamal
Dubai - Mubasher: The stock of Dubai Islamic Bank (DIB) has been seeing noticeable gains since the beginning of July amid speculations of a rise in semiannual profits to near AED 2 billion.
In the first ten sessions of the month, the stock rose by 2.13% and achieved market gains of AED 593 million, enhancing its position after the positive performance in the first half of the year.
Traded values amounted to AED 890 million, dominating around 50% of the total turnover in the Dubai Financial Market (DFM), which totalled AED 1.81 billion.
The bank is expected to achieve profits of around AED 976 million in the second quarter of 2017, increasing by 5% compared to the same period last year, while profits are expected to grow by 10% in H1-17 to more than AED 1.98 billion.
Tarik Qaqish, the general asset manager at Mena Corp, is expecting an 8% increase in profits in Q2-17, noting that as Dubai carries on with its economic growth, DIB will be among the top winners from the projects of economic diversification.
DIB currently enjoys a growth rate in loan volumes, while maintaining the rate of nonperforming loans, thus increasing its profitability, Qaqish noted, adding that the bank has been issuing sukuk to boost growth and make best use of the low interest rates in the UAE.
It is worth noting that Dubai Islamic Bank issued $4.2 billion worth of Sukuk in Nasdaq Dubai during H1-17.
As for the outlook for the stock, Qaqish forecasts DIB to continue attracting purchasing powers in 2017 and 2018.