DIB’s 9-month net profit surges 72% to Dh2.06 billion

Net revenue jumps 29%; net funded income increases 21%

By Issac John/associate Business Editor

  • Follow us on
  • google-news
  • whatsapp
  • telegram

Published: Fri 24 Oct 2014, 12:21 AM

Last updated: Tue 7 Apr 2015, 10:44 PM

Dubai: Dubai Islamic Bank, or DIB, on Wednesday reported 72 per cent jumpin nine-month net profit to Dh2.060 billion from Dh1.2 billion in the same 2013 period.

The largest Islamic bank in the UAE by total assets recorded a net profit rise of 57 per cent during the third quarter to Dh723 million. The bank said its gross revenue increased by 17 per cent to Dh4.708 billion in the first three quarters from Dh4.024 billion year on year.

The bank said its nine-month net revenue jumped 29 per cent to Dh4.104 billion from Dh3.175 billion as its net funded income increased by 21 per cent to Dh2.633 billion compared to Dh2.176 billion for the same period in 2013.

The first three quarters also recorded strong growth in year-on-year fee and commission income, which rose by 38 per cent to Dh874 million, the bank said in a statement.

The bank, the world’s first Islamic bank, said net operating profit before impairment charges increased by 34 per centto Dh2.615 billion from Dh1.954 billion.

The bank said it continued to register a drop in non-performing loans leading to reduced impairment losses of Dh538 million compared to Dh751 million in the nine months of 2013.

The bank’s total assets surged by 13 per cent to Dh128.5 billion at from Dh113.3 billion at December 31, 2013. Net financing portfolio showed a surge of 27 per cent to Dh71.1 billion from Dh56.1 billion at the end of 2013 while investment in sukuk increased by 29 per cent to Dh14.9 billion in the first nine months.

Mohammed Ibrahim Al Shaibani, director-general of Dubai Ruler’s Court of Dubai and chairman of DIB, said the strong positive results for the third quarter 2014 are a clear reflection of the bank’s strategic shift and intense focus on growth.

“I strongly believe that DIB has just started unlocking the potential that it holds and I expect the current management and the team to spearhead the development and progress in the financial sector in the country as we move towards making Dubai the capital of the Islamic Economy,” said Al Shaibani.

Abdulla Al Hamli, the bank’s managing director, observed that over the last few years, the bank has invested significant time and money across all key areas of the bank in order to get to a platform of growth.

“That investment is now clearly paying off,” he added.

“The positive results you see now further reinforce our confidence in the management decisions made in the past and strengthens our belief in the ability of the team to take the franchise to even greater heights over the coming years,” said Al Hamli.

Dr Adnan Chilwan, chief executive officer of DIB, said the bank has emerged as a strong and leading player in the banking and finance sector setting the stage for future progress and growth.

“A few years ago, we established a roadmap aimed to completely transform the bank. Whilst driven from within, we always had the external stakeholders in our sight. Building trust was key which meant a strong focus on openness and transparency as we worked tirelessly to ensure that we stand by our commitments.”

He said global economic growth and development has seen a major shift over the last decade with Asia and in particular, Middle East, South Asia and Far East being amongst the major drivers.

“In most of these high growth nations, Islamic Finance is essentially being seen as a key component of economic progress and prosperity which in turn, has led to substantial enhancement of wealth across a growing population fuelling massive liquidity within the Islamic investor base.”

“As the world’s first Islamic bank, we set high standards for ourselves and all of us at DIB shoulder the responsibility of developing this fast growing segment into a global norm for banking and finance,” said Chilwan.

The bank said NPLs were on a consistent decline with NPL ratio improving to 8.2 per cent compared to 11.1 per cent at the end of 2013.Customer deposits up by 21 per cent to Dh95.5 billion from Dh79.1 billion by end 2013.

The bank said the group continued to maintain strong capital adequacy at 15.5 per cent. Current Tier 1 capital adequacy ratio of 15.2 per cent is well above the stipulated requirement of eight per cent and sufficient to support the existing growth agenda.

— issacjohn@khaleejtimes.com



More news from