DIB profit up 7% to Dh2.14b amid robust asset growth
DIB total income increases to Dh4.86b in first half, up 15% from the same period in 2016
Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE by total assets, yesterday reported a group net profit of Dh2.14 billion in the first half of 2017, up 7 per cent compared to Dh2 billion for the same period last year.
For the second quarter of this year the bank reported a net profit of Dh1.1 billion compared to Dh1 billion reported in the same period last year.
In the first half of the year DIB’s total income increased to Dh4.86 billion, up 15 per cent compared with Dh4.23 billion for the same period in 2016. Net operating revenue increased to Dh3.67 billion, up 10 per cent compared with Dh3.35 billion for the same period in 2016.
“DIB continues to show remarkable progress with total income now reaching nearly Dh5 billion, a significant increase of 15 per cent compared to the same period last year,” said Mohammad Ebrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of DIB.
Operating expenses remained nearly flat at Dh1.16 billion compared to Dh1.15 billion for the same period in 2016. Gross cost of credit risk reduced to 55 basis points (bps) compared to 75 bps for the same period in 2016. Cost to income ratio declined to 31.6 per cent compared with 34 per cent at the end of 2016.
Well positioned
“The bank’s first half performance continues to remain at the top end of the market. The strong growth throughout the past few years has now squarely positioned DIB among the top 3 Islamic banks in the world,” said Abdullah Al Hamli, managing director of DIB.
DIB reported robust asset growth across all core businesses during the first six months of 2017. Total assets stood at Dh193.1 billion, an increase of 10 per cent, compared to Dh174.9 billion at the end of 2016. Net financing assets rose to Dh125.4 billion up by 9 per cent, compared to 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.
“DIB 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 9 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,” said Dr Adnan Chilwan, Group CEO of DIB.