UPDATE 1-UAE's ADIB says euro zone woes to pressure profit
* Q2 net profit 322.6 mln dhs vs 315.2 mln
* H2 outlook subdued by euro zone worries, UAE regs
* Q2 provisions 186.6 mln dhs vs 235.8 mln in 2011 (Adds detail, background)
DUBAI, Aug 1 (Reuters) - Abu Dhabi Islamic Bank said euro zone uncertainty and new financial regulations in the United Arab Emirates would weigh on earnings growth for the rest of the year, after reporting a small rise in the second quarter.
"We continue to anticipate limited quality credit opportunities and a resultant subdued growth in profits for the balance of 2012," ADIB Chief Executive Tirad Mahmoud said in a statement on Wednesday, without giving further details.
The largest sharia-compliant lender by market value in the UAE said net profit in the three months to June 30 rose 2.3 percent to 322.6 million dirhams ($87.8 million).
The results beat estimates of two analysts who forecast profit of 314 million dirhams and 294 million dirhams in a Reuters poll.
Banking rules in the UAE announced this year include caps on lending to sovereign and government-related entities, a requirement to hold liquid assets worth 10 percent of liabilities and further debt forgiveness for Emiratis.
Revenue fell to 886.8 million dirhams compared with 909.6 million in the same quarter last year.
Loans and advances at the end of June stood at 50.3 billion dirhams, up 3.1 percent from December 31, 2011. Customer deposits climbed 9.6 percent to 60.5 billion dirhams.
The bank allocated 186.6 million dirhams in provisions for bad debts in the second quarter, down from 235.8 million a year ago.
In May, ADIB opened its first branch in London, with its swanky Knightsbridge location aimed at targeting wealthy Gulf clients visiting Britain who wanted to bank in accordance with their faith.
Shares in ADIB ended down 1 percent prior to the results, compared with a 0.4 percent rise on the main Abu Dhabi index . ($1 = 3.6730 UAE dirhams) (Reporting by Stanley Carvalho; Writing by David French; Editing by Jon Loades-Carter)
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