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DIB's 9-month net profit hits Dh4b

Issac John /Dubai
Filed on October 15, 2019

(KT file)

Dubai Islamic Bank Group reported on Tuesday an eight per cent growth in net profit to Dh4 billion in the first three quarters.

The bank said its total income hit Dh10.2 billion, up by 20 per cent year on year compared to Dh 8.532 billion in the same 2018 period.

In a statement, the bank said net operating revenue grew to Dh 6.877 billion, up 14 per cent compared to Dh6.055 billion in 2018.

Operating expenses were stable at Dh1.771 billion while net operating profit before impairment charges grew by 19 per cent year on year to Dh 5.105 billion, DIB said in a statement.

Mohammed Ibrahim Al Shaibani, director-general of His Highness The Ruler's Court of Dubai and Chairman of Dubai Islamic Bank, said the UAE banking sector continues to demonstrate strength and resilience amidst a subdued global environment, with total assets of more than $700 billion, a growth of nine per cent. The sector today has the largest share of total listed banking assets in the GCC at more than 30 per cent.

"The on-going economic reforms, particularly in strengthening the private sector, has boosted the non-oil portion of the economy on the back of an expansionary budget and supportive fiscal policies. he UAE has continued to emphasize its position as a global business hub, by leading the Arab World in the recent World Economic Forum 2019 Global Competitiveness Index. The country's current position amongst the top 25 in the world has been largely driven by several innovative measures by the government to ensure the presence of an environment that is attractive to both local and global investors alike," said Al Shaibani.

Dubai Islamic Bank's managing director Abdulla Al Hamli said in line with the national emiratisation agenda, DIB remains committed in developing talent and leadership skills within the bank with Emiratisation ratio now reaching close to half of the workforce.

"This has been a key element of the bank's heritage and strategy which aims to grow and develop future leaders to support the global ambitions of the UAE," said Al Hamli.

He said the Islamic banking sector in the UAE continue to remain robust with assets crossing Dh560 billion and a healthy 23 per cent domestic market share. "DIB continues to be the market leader in UAE and remains committed to accelerate the penetration of the sector in the wider economy."

DIB Group chief executive officer Dr Adnan Chilwan, said DIB's fundamentals remain strong with profitability reaching Dh4 billion while focus on delivering strong returns to our shareholders continues with return on investment at 17.6 per cent.

"The quarter saw both Moody's and Fitch re-affirm the bank's credit ratings with a 'stable' outlook signifying the strength of the franchise to navigate through the current global economic environment and sustain profitable growth," said Chilwan.

He said focus on quality growth has seen a double digit rise in the top line income of 20 per cent which combined with efficient cost management has translated into cost to income ratio being stable at 27.9 per cent, among the best in the market. 'Given the bank's future plans around digitalisation, we expect to remain around these levels going forward."

- issacjohn@khaleejtimes.com

author

Issac John

Editorial Director of Khaleej Times, is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE's mainstream journalism for 35 years, including 23 years with Khaleej Times. A post-graduate in English and graduate in economics, he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends, he is respected for his astute understanding of the local business scene.


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