Friday 20 October 2017
 
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10pc INCREASE IN GAINS

Mohammed Ibrahim Al Shaibani, Abdulla Al Hamli and Dr Adnan Chilwan.

Dubai Islamic Bank 9-month profit hits $898.7m

DUBAI, 8 days ago

Dubai Islamic Bank (DIB), the first Islamic bank in the world and the largest Islamic bank in the UAE by total assets, reported a group net profit of Dh3.301 billion ($898.7 million) for the nine-month period ending September 30, up 10 per cent compared with Dh3.011 billion for the same period in 2016.

Total income increased to Dh7.510 billion, up 17 per cent compared with Dh6.410 billion for the same period in 2016.

Net operating revenue increased to Dh5.681 billion, up 13 per cent compared with Dh5,048 billion for the same period in 2016.

Efficient and proactive cost management led to operating expenses remaining nearly flat at Dh1.741 billion compared to Dh1.716 billion for the same period in 2016.

Net operating income before impairment charges grew by 18 per cent to Dh3.940 billion compared to Dh3.332 billion for the same period in 2016.

Cost of credit risk reduced to 63 bps compared to 81 bps for the same period in 2016. Cost to income ratio reduced to 30.7 per cent compared with 34 per cent at the end of 2016.

Asset growth remains robust
The bank’s net financing assets rose to Dh131.3 billion, up by 14 per cent, compared to Dh115.0 billion at the end of 2016.
Its sukuk investments increased to Dh25.2 billion, a growth of 8 per cent, compared to Dh23.4 billion at the end of 2016. Total assets stood at Dh201.2 billion, an increase of 15 per cent, compared to Dh175 billion at the end of 2016.

Asset quality trends remain positive
The bank said its NPA ratio continues its downward trajectory improving to 3.4 per cent, compared to 3.9 per cent at the end of 2016. Provision coverage ratio also improved to 121 per cent, compared to 117 per cent at the end of 2016. Overall coverage including collateral at discounted value now stands at 162 per cent, compared to 158 per cent at the end of 2016.

Strong liquidity
Customer deposits stood at Dh143.5 billion compared to Dh122.4 billion at the end of 2016, up by 17 per cent. CASA deposits increased by nearly 7 per cent to Dh50.9 billion from Dh47.4 billion as at end of 2016 leading to a robust 35 per cent constitution of the total deposit base.

The bank’s capital adequacy ratio remained strong at 16.9 per cent, as against 12 per cent minimum required. Tier 1 CAR stood at 16.3 per cent under Basel II, against minimum requirement of 8 per cent.

Earnings per share stood at Dh0.55 as at Q3, 2017 and return on equity stood at 18.6 per cent as at Q3 2017. Return on assets steady at 2.34 per cent as at Q3 2017.

Mohammed Ibrahim Al Shaibani, director-general of the Ruler’s Court of Dubai and chairman of Dubai Islamic Bank, said: “The recovery of international oil prices and the stability witnessed in the recent past will be a major source of support in the area of funding and liquidity for the banking sector.

“With the solidity and resilience displayed by UAE’s financial market, credit growth is expected to more than double to 5 per cent in 2018, spurred by the government’s unabated progress on infrastructure development in line with its economic aspirations.

“DIB continues to remain at the forefront of the industry with solid earnings growth as net profit increased by 10 per cent YoY, primarily driven by the bank’s persistent efforts in maximising its share of wallet across a diverse array of sectors and segments.”

Dubai Islamic Bank managing director Abdulla Al Hamli said: “The bank has given another remarkable performance this quarter with total income growing by 17 per cent YoY as DIB continues to outpace the sector growth.

“The progress we have made in implementing our growth aspirations has led to the bank strengthening its market share with both the financing book and the deposit base growing by mid to high double digits in the first nine months of 2017.”

Dubai Islamic Bank group chief executive officer Dr Adnan Chilwan said: “Crossing the landmark of Dh200 billion in total assets is another momentous milestone in our incredible growth journey over the last four years. This market beating performance clearly demonstrates the strength of the franchise and the potential the organization has to continue to defy the trend despite the challenges thrown by the global economic environment.” - TradeArabia News Service
 




Tags: UAE | Dubai Islamic Bank | DIB |

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