Abu Dhabi - Arabstoday
Abu Dhabi Islamic Bank warned on Sunday that profit growth for the rest of the year would be \"subdued\" as it posted flat income for the first quarter of 2012 on increased provisioning. ADIB, the second-largest Islamic lender in the UAE, made a group net profit of AED307.3m ($83.7m) in the three months to March 31 versus AED304.6m last year, it said in a statement. The number was in line with analysts\' average forecast of AED306m. Tirad Mahmoud, the bank\'s chief executive, warned a continuation of the global financial crisis and euro zone uncertainty, combined with regulatory changes in the UAE, would pose challenges which could dampen its profit for the rest of the year. \"We continue to anticipate limited quality credit opportunities and a resultant subdued growth in profits for the balance of 2012,\" he said in the statement. ADIB booked AED186.1m of provisions in the first quarter, 16.6 percent higher compared to the same period last year. Net customer financing increased 3.1 per cent to AED49.6bn in the first three months of 2012, while customer deposits grew 10.9 percent to AED57.6bn in the same period. ADIB\'s subsidiaries include brokerage ADIB Securities and Burooj Properties and both were hit by weak equity and real estate markets in the UAE, it added.