* Q2 net profit 667.5 mln dhs vs 418.2 mln dhs yr-ago
* Beats estimates on higher fee, investment income
* Latest UAE bank reporting strong Q2 profits
(Adds detail, context)
DUBAI, July 24 Dubai Islamic Bank
(DIB), the United Arab Emirates' largest sharia-compliant
lender, posted a 59.6 percent jump in second-quarter net profit
on Thursday, aided by higher fee and investment income.
Beating analysts' forecasts, the bank made 667.5 million
dirhams ($181.8 million) in the three months to June 30, it said
in a bourse filing, up from 418.2 million dirhams in the
corresponding period of 2013.
The average forecast of four analysts polled by Reuters was
for a net profit of 627.3 million dirhams.
The result continues a positive earnings reporting season
for banks in the UAE, whose profits have jumped in recent
quarters because of a growing domestic economy and improved
asset quality. At the end of last decade, corporate debt
problems and a real estate market crash slashed banks' profits.
Fellow Dubai lender Emirates NBD posted a 34.8
percent increase in its second-quarter net profit on Thursday,
while the majority of banks in Abu Dhabi recorded double-digit
profit growth for the three months to June 30.
DIB's earnings were boosted by a 34.5 percent increase in
income from commissions, fees and foreign exchange, as well as
hikes in revenue generated from property and other investments.
The lender, which completed the purchase of a 24.9 percent
stake in Indonesian lender Bank Panin Syariah in June,
was also aided by a 13.3 percent year-on-year reduction in loan
impairments, which dropped to 160.3 million dirhams in the
Customer deposits stood at 94.8 billion dirhams at the end
of June, up 20 percent on the end of 2013, while total loans
were 18 percent higher over the same timeframe at 66.1 billion
($1 = 3.6727 United Arab Emirates Dirhams)
(Reporting by David French; Editing by Andrew Torchia)