* Real estate unit made a loss in H1
* Bank took 171.4 mln in credit loss provisions, impairments
DUBAI, July 29 (Reuters) - Abu Dhabi Islamic Bank ADIB.AD reported on Wednesday a 30-percent drop in its second-quarter net profit, dragged down by provisions against credit losses and its real estate unit.
The bank, one of the smaller banks in the United Arab Emirates capital, said it made a second-quarter net profit of 193.4 million dirhams ($52.65 million), down from 275.7 million dirhams in the same period last year.
ADIB’s real estate investment unit Burooj made a net loss of 14.4 million dirhams in the first half, which compared with a net profit of 141.8 million dirham in the same period in 2008.
“While the (real estate) sector remains under pressure Abu Dhabi is resilient and the future is starting to look promising,” the bank said. It expects Burooj to be profitable again before the end of the year.
The lender said it took 171.4 million dirhams in provisions against credit losses during the second quarter of 2009.
“The credit environment remains weak and we expect the rest of this year to remain challenging with further provisioning necessary,” said chief executive Tirad Mahmoud. ($1=3.673 Uae dirhams) (Editing by John Irish)
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