The lender made a net profit of AED890 million ($242.5 million) for the three month period ending June 30, compared with AED787 million in the prior-year period.
Analysts polled by Reuters had estimated an average profit of AED885.3 million for the second-quarter. Profit for the first six months of the year grew 3.4 percent over the same period last year to AED1.77 billion.
“Our strong business fundamentals coupled with the strong growth in our business operation, will now place us in a firmer position to increase lending to the targeted sectors in the coming quarters of 2011 and beyond,” said Andre Sayegh, FGB’s chief executive officer.
Net interest and Islamic financing income grew to 1.22 billion dirhams in second quarter, up 17 percent over the prior year period.
This represented 77 percent of the bank’s operating income and offset an 18 percent drop in fees and commissions during the quarter. Provisions for non-performing loans declined 4 percent in the first half to AED870 million, the bank said.
In June, FGB said it would raise its foreign share ownership limit to 25 percent from 15 percent to attract more investors.
FGB also launched a $3.5 billion Islamic bond or sukuk, according to a prospectus filed at the London Stock Exchange.
Shares in FGB ended flat on Wednesday prior to the results.
The stock has risen 2.1 percent so far this year.
