Dubai Islamic Bank (DIB) has secured the go-ahead from its board to weigh the acquisition of rival Noor Bank.

In a statement to the Dubai Financial Market, DIB revealed that it has been directed to “revert to the board with the findings in three weeks.”

Moreover, DIB obtained the green light to appoint financial advisers.

The advisers will be tasked with carrying out due diligence.

They will also be responsible for offering opinion on Noor’s valuation.

DIB shareholder- Investment Corporation of Dubai (ICD) – holds a 22.85% stake in Noor.

ICD has a 28.37% holding in DIB.

The plan comes as DIB posted a net profit of AED1.35bn ($368.8m) for the first quarter of 2019.

This marks a rise of 12% from last year’s figure of AED1.21bn.

Total income surged 26% to AED3.41bn on a year-on-year basis.

Operating expenses rose to AED599m from AED590m.

In the recent times, various lenders in the UAE have merged operations or are in the process of doing so.

Earlier this year, Abu Dhabi Commercial Bank, Union National Bank and Al Hilal Bank agreed to merge their businesses.

The combined group will have $114bn in assets.

In 2017, First Gulf Bank and the National Bank of Abu Dhabi merged operations.

The consolidation led to the creation of the largest bank in the UAE.