DIB gets go-ahead to acquire Noor Bank; profit up
dubai — Dubai Islamic Bank (DIB) said on Tuesday that it received approval from its board to explore the possible acquisition of its rival Noor Bank as the world’s first shariahcompliant bank posted a net profit of Dh1.34 billion for the first quarter, up 15 per cent from Dh1.17 billion a year ago.
The bank’s total income rose 26 per cent to Dh3.4 billion while net financing and sukuk investments of Dh179.3 billion rose two per cent from end-2018.
The largest shariah-compliant lender in the UAE said its total assets stood at Dh226.5 billion at the end of quarter, up 1.3 per cent
DIB continues to deliver on all fronts by constantly evolving its business model based on the needs of its flourishing customer base
Dr Adnan Chilwan, Group chief executive officer, DIB
from end-2018 while its total income reached Dh3.4 billion, up by 26 per cent year on year.
In a statement, the bank said it also received approval to appoint financial advisers to conduct due diligence and valuation of Noor Bank.
Dubai’s sovereign investment group, Investment Corp of Dubai (ICD) is a common shareholder in the two banks. ICD owns 28.37 per cent of DIB and more than 22.7 per cent of Noor Bank.
Mohammed Ibrahim Al Shaibani, director-general of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank, said the banking sector remains resilient with strong capitalisation and rising profitability. DIB continues to progress with robust set of first quarter results with total income growing by 26 per cent to reach to Dh3.4 billion driven by consistent strong growth across our businesses.
He said the UAE’s GDP continues to grow crossing $400 billion following successful structural reforms, strengthening of fiscal policies as well as growth in the non-oil sectors. “The implementation of various initiatives set out to attract investors and businesses are paving the way for sustained growth in the UAE in the years to come,” Al Shaibani said. “Global market optimism is returning as reflected by the positive index performances as well as increasing trade volumes in the UAE financial markets since the start of the year,” he said.
DIB managing director, Abdulla Al Hamli, said global oil prices continue its upward trend since the start of the year. “This, together with stimulus initiatives being put in place, will boost economic activity within the UAE and promote public spending as well as heightened private and public sector confidence.” Dr Adnan Chilwan, group chief executive officer, said DIB’s growth is synonymous with that of the UAE.
“We have proven that year-onyear, quarter-on-quarter. Our latest, first quarter net profit has grown by 12 per cent, reaching Dh1.3 billion. DIB continues to deliver on all fronts by constantly evolving its business model based on the needs of its flourishing customer base.”
“Steady growth in deposits supported by robust capital has ensured the balance sheet crosses Dh226 billion. Efficiencies continue to strengthen our P&L with cost income ratio now at 28.1 per cent,” said Chilwan.