DIB’s first quarter profit rises by 18% to Dh1 billion

11% jump recorded in customer deposits

dubai — Dubai Islamic Bank, or DIB, on Wednesday announced that its group’s first quarter net profit increased by 18 per cent to Dh1 billion this year.

The bank said its total income increased to Dh2.1 billion, up 22 per cent compared with Dh1.73 billion for the same period in 2015. Its net operating revenue increased to Dh1.69 billion, up 11 per cent compared with Dh1.5 billion for the same period in 2015. Impairment losses declined to Dh118 million compared with Dh136 million for the same period in 2015.

Mohammed Ibrahim Al Shaibani, chairman of Dubai Islamic Bank, said: “The global markets entered 2016 with continued volatility in the commodities and equities sector. Despite this landscape, the UAE’s domestic banking sector has so far reported healthy results with DIB once again demonstrating its robust positioning by delivering another strong earnings for the period.”

Earlier this year, the board also approved several initiatives to strengthen the bank’s capital in order to proactively support DIB’s growth ambitions in 2016.

“As markets stabilise over the coming months, I am confident that DIB will continue to be amongst the leading performers in the UAE financial sector,” Al Shaibani said. Dubai Islamic Bank managing director, Abdulla Al Hamli, said: “Continued focus on market penetration and cross sell has led to the bank delivering another solid set of results. DIB has also successfully received ISO 9001:2008 Human Resource Quality Management System certification demonstrating the robust nature of the bank’s policies, procedures and processes.” Dubai Islamic Bank Group chief executive officer, Dr Adnan Chilwan, said: “Last year, we achieved a major milestone by joining the $1 billion profit club in the banking sector in UAE. 2016 promises to be another strong one with DIB delivering more than Dh1 billion profit in the 1st quarter.

“Whilst we are cognisant of the challenges the markets pose today, the platform established over the last couple of years continues to create new business opportunities for the bank which were non-existent before. The diversified suite of products and services has led to not just new-to-bank customers and sectors, but has also allowed for greater penetration and enhanced cross sell in existing business.”

Customer deposits for the period ended March 31, 2016 increased by 11 per cent to Dh122 billion from Dh110 billion as of end of 2015. CASA book continues to be strong increasing by nearly seven per cent to Dh47.6 billion compared with Dh44.5 billion in 2015.

Investment deposits grew by 14.5 per cent for the period ended March 31, 2016 to Dh74.8 billion from Dh65.4 billion as at end 2015. The increase in customer deposits has led to a financing to deposit ratio improving to 84 per cent as of Q1 2016 compared to 88 per cent at the end of 2015.