Dubai - Mubasher: MubashertTrade Research has maintained their Buy/Moderate Risk rating for Dubai Islamic Bank with the same price target (PT) of AED 6.9 per share, according to a recent report.
The research firm believes that the strong growth in the bank's corporate loan book stems from higher demand from companies for credit facilities as expansions get underway in time for Expo 2020 event.
The report also noted that that the bank's management confirmed its plans to further reduce non-performing loans NPLs over the coming period.
“Affirming this view is the witnessed improvement in the NPL coverage ratio which jumped from 97% in March 2016 to 118% in March 2017. The bank's CAR ratio is currently standing at 16.5% at the end of March 2017 compared to the minimum required by the Central Bank of the UAE of 12%,” the report added.
The bank reported a rise in profits by 4.1% year-on-year during the first quarter of 2017.
Net profits reached AED 1.042 billion ($283.64 million) in Q1-17, compared to AED 1.001 billion ($272.48 million) in Q1-16, while operating revenues grew 7% to AED 1.804 billion in Q1-17, compared to AED 1.690 billion in Q1-16.
