DIB Plans to Buy 40% Stake in Indonesian Lender in Overseas Push

Dubai Islamic Bank is in talks to buy a 40 percent stake in an Indonesian Islamic bank as it seeks expansion abroad.

The acquisition will be completed before the end of the year, Chief Executive Officer Adnan Chilwan told reporters today in Dubai, without giving further details. DIB is also planning to open an office in Kenya this year, he said.

“We would never have gone to Indonesia without seeing the potential,” Chilwan said. “It is a market that is very large when you look at the Islamic population, but we didn’t do this transaction five years ago as valuations were too high.”

The largest Sharia-compliant lender in the United Arab Emirates also said today that first-quarter profit more than doubled to 636.6 million dirhams ($173 million).

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