Dubai Islamic Bank's H1 profit rises 7% to Dh2.14 billion
Dubai Islamic Bank (DIB) on Wednesday said its net profit in the first-half of 2017 increased seven per cent to Dh2.14 billion from Dh2 billion in the same period last year on the back of higher income.
Total income increased to Dh4.86 billion, an increase of 15 per cent compared to Dh4.23 billion for the same period in 2016. Net operating revenues increased to Dh3.67 billion, up 10 per cent compared with Dh3.35 billion for the same period in 2016.
Net financing assets rose to Dh125.4 billion, up by nine per cent as against Dh114.9 billion at the end of 2016. Sukuk investments increased to Dh26.4 billion, a growth of 13 per cent, compared to Dh23.4 billion at the end of 2016.
Total assets stood at Dh193.1 billion, an increase of 10 per cent, compared to Dh174.9 billion at the end of 2016. Customer deposits stood at Dh141.4 billion compared to Dh122.3 billion at the end of 2016, up by 16 per cent.
Capital adequacy ratio remained strong, standing at 16.6 per cent as against 12 per cent minimum required. Mohammed Ibrahim Al Shaibani, Chairman of DIB, said Shariah-compliant bank continues to show remarkable progress with total income now reaching nearly Dh5 billion.
"Our international expansion is on track as the bank officially received its license in April from the Central Bank of Kenya to start our operations. This paves the way for the bank's aspirations in Africa and proliferation of Islamic finance across Asia, Middle East and the East African Belt," Al Shaibani said.
Dubai Islamic Bank Group Chief Executive Officer Dr. Adnan Chilwan, said the Islamic bank "continues to demonstrate robust earnings on the back of strong and unyielding focus on key economic growth sectors in the markets and jurisdictions we operate. The nine per cent growth in financing assets supported by the 16 per cent rise in customer deposits clearly showcases the franchise's incredible ability to continue to generate liquidity at will while simultaneously deploying the same in quality earning assets. With liquidity pressure easing this year along with hikes in Fed rates, we expect relative improvement in margins, as a significant portion of our financing book will have a favourable impact due to its variable pricing nature."
Listed at the Dubai Financial Market, the Shariah lender's share price was unchanged at Dh5.85 at around 2.32pm.