Dubai Islamic Bank board backs examining possible deal for Noor Bank

Dubai Islamic Bank (DIB) on Tuesday said it had received approval from its board to explore the possible acquisition of unlisted Noor Bank.

The United Arab Emirates’ largest sharia-compliant lender also received approval to appoint financial advisers to conduct due diligence and valuation of Noor Bank, it said in a statement.

Dubai’s sovereign investment group, Investment Corp of Dubai (ICD) is a common shareholder in the two banks. ICD owns 28.37 per cent of DIB and more than 22.7 per cent of Noor Bank.

DIB, the world’s oldest Shariah-compliant lender, is in talks with shareholders of Dubai-based Noor Bank over a possible acquisition of the lender, three sources told Reuters this month.

Read: Dubai Islamic Bank responds to reports of acquiring Noor Bank

In a statement on April 14, the bank said it regularly looks at opportunities to support expansion including acquisitions.

DIB also reported a first quarter net profit attributable to shareholders of Dhs1.34bn ($365m), up 15 per cent from Dhs1.17bn a year earlier.

Total income rose 26 per cent to Dhs3.4bn.

Net financing and sukuk investments of Dhs179.3bn were up 2 per cent from end-2018.

Total assets stood at Dhs226.5bn at the end of quarter, up 1.3 per cent from end-2018.