DIB net profit rises 11% in Q1 2012

Dubai Islamic Bank (DIB) on Sunday reported a net profit of Dh245 million for the first quarter of 2012, an increase of 11 per cent compared to Dh222 million in the corresponding period of 2011. Total revenue earned during this quarter was Dh1.23 billion compared to Dh1.28 billion in the first quarter of 2011.

As of March 31, 2012, the bank’s total assets stood at Dh92.5 billion. On the same date, customer deposits stood at Dh68.1 billion, an increase of five per cent compared with Dh 64.7 billion as of December 31, 2011. The bank’s core business continued to grow in the first quarter of 2012, with income from financing and investing assets and investment sukuks increasing by two per cent.

DIB maintained a financing-to-deposit ratio of 77 per cent as of March 31, 2012. The bank also reported a Basel II capital adequacy ratio of 18.2 per cent as of March 31, 2012.  DIB continued to strengthen its balance sheet with additional provisions of Dh 299 million during the first quarter of 2012. 

“DIB’s strong start to the year is testament to the bank’s proven business model, robust liquidity position and stable funding base,” said Mohammed Ibrahim Al Shaibani, Chairman of Dubai Islamic Bank. “The recent repayment in full of a $750 million five-year sukuk further underlines the bank’s financial strength.”

DIB opened three new branches during the first quarter of 2012. The branches in the Gold Souk in Deira, Al Baraha area and Al Barsha Mall, bring the bank’s UAE-wide network to a total of 74 branches. The quarter also saw the launch of Al Islami Business Online, a portal enabling companies to access over 75 services at the click of a button.

“DIB has begun 2012 where it left off in 2011 by reporting strong and sustained growth across its core operations,” said Abdulla Al Hamli, Chief Executive Officer of DIB. “Our continued investment in both bricks and mortar and alternative distribution channels has served to further reinforce DIB’s status as the UAE’s leading Islamic bank.”

DIB won a number of accolades in the first quarter of 2012. In February, the bank won three awards at the Islamic Finance News awards in the “Corporate Finance,” “Restructuring” and “Structured Finance” Deals of the Year categories. This was followed in March with two awards at the Banker Middle East Product Awards 2012 in the “Best Distance Banking Service” and “Best Structured Product” categories.
 
 

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