Dubai Islamic Bank net profit up 7%

Bank’s net financing assets were up 14 per cent to Dh111.1b

Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE by total assets, yesterday reported a Group Net Profit of Dh3.01 billion for the first nine months of the year, up 7 per cent compared with Dh2.8 billion for the same period in 2015.

For the third quarter of the year the bank maintained a net profit of Dh1 billion, marginally up compared to same period last year.

“Despite somewhat difficult times for the global economy, the UAE economy and banking sector continues to remain resilient with healthy profitability and strong capitalisation levels across the industry. Dubai’s economic diversification has placed the emirate in a robust position to actively pursue its long term goals, particularly in the field of Islamic finance and economy. DIB’s strategy remains aligned to the emirate’s agenda as the bank has, once again, come out with a stellar performance despite the challenging environment,” said Mohammad Ebrahim Al Shaibani, Director General of the Court of Dubai Ruler and Chairman of Dubai Islamic Bank.

For the nine-month period DIB reported strong growth in gross revenue with total income increasing to Dh6.41 billion, up 16 per cent compared with Dh5.52 billion for the same period in 2015. Net operating revenue increased to Dh5.04 billion, up 5 per cent compared with Dh4.78 billion for the same period last year.

The bank’s net financing assets stood at Dh111.1 billion up by 14 per cent, compared to Dh97.2 billion at the end of 2015, in line with guidance for the year. Sukuk investments stood at Dh21.5 billion, an increase of 7 per cent, compared to Dh20.1 billion at the end of 2015. Total assets stood at Dh171.5 billion, an increase of 14 per cent, compared to Dh149.9 billion at the end of 2015.

Balance sheet grows

“Our balance sheet has grown by more than 50 per cent in under three years which, given the global economic environment, is a remarkable feat. In doing so we have nearly doubled our financing book, yet managed to maintain a strong liquidity position,” said Dr Adnan Chilwan, Group Chief Executive Officer of DIB. On the asset quality front, bank’s impairment losses declined to Dh304 million compared with Dh341 million for the same period in 2015. Cost to income ratio remained stable at 34 per cent compared with 34.1 per cent for the same period in 2015.