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DIB's 2019 net profit up 2% to Dh5.1 billion

Staff Report/Dubai
Filed on February 12, 2020
DIBs 2019 net profit up 2% to Dh5.1 billion

(KT file)

Dubai Islamic Bank's (DIB) net profit increased two per cent to Dh5.1 billion in 2019, while total income grew 17 per cent to Dh13.68 billion as compared to Dh11.73 billion in 2018.

Customer deposits for the year ending 2019 reached Dh164 billion from Dh156 billion at the end of 2018.

Operating expenses for the year ending 2019 remained broadly stable at Dh2.358 billion compared to Dh2.322 billion in 2018. Cost to income ratio continued its healthy trend, now at 26.9 per cent compared to 28.3 per cent at the end of 2018. Managing costs continues to be a key strength of the bank, as the C/I ratio remains amongst the strongest in the sector.

Mohammed Ibrahim Al Shaibani, director-general of His Highness The Ruler's Court of Dubai and Chairman of Dubai Islamic Bank, said the bank's growth performance over the years has resulted in a balance sheet expansion to more than Dh230 billion, with a market cap crossing $10 billion.

Net financing and sukuk investments increased to Dh184.2 billion for the year ending 2019 from Dh 175.9 billion at the end of 2018, a rise of nearly five per cent. The bank's high margin Sukuk portfolio reached Dh33 billion in the year ending 2019 versus Dh31 billion in 2018.

DIB has also completed acquisition of Noor Bank with integration underway to realize the synergies and boost returns.

"Whilst our organic growth has been well above the market over the last five years, CAGR of 13 per cent (assets '14-'19), we are always on the lookout on how to accelerate this further. Noor Bank acquisition is a prime example of the same, and with the transaction completed, we are now fully geared to push forward with the integration in the shortest possible timeframe, and realize the extensive synergies expected from this deal," said Adnan Chilwan, group CEO of Dubai Islamic Bank.

The bank's board has recommended an increase in foreign ownership limit to 40 per cent, subject to regulatory and corporate approvals.


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