Dubai Islamic gets $816m capital boost
Dubai, April 27, 2009
Dubai Islamic Bank (DIB) said it has won approval from the board to increase the bank’s capital by Dh3 billion ($816 million) over a five-year period.
The DIB board at its extraordinary general meeting held on Monday also approved the conversion of Dh3.75 billion deposit into Tier 2 capital of DIB, pursuant to terms and conditions proposed by the Ministry of Finance.
'By approving the capital increase, members of the assembly have demonstrated their support for DIB’s expansion plan aimed at protecting the lending position of the bank during the current financial crisis,' said Mohammed Ibrahim Al Shaibani, DIB chairman.
'We look forward to their continued support in 2009 and in the years to come,' said Al Shaibani.
Chairing the EGM, Sheikh Khaled Bin Zayed Al Nehayan, vice chairman of Dubai Islamic Bank, said: “The bank will sustain its commitment to contributing to the ongoing growth, stability and diversification of the UAE and all the markets we serve.'
'Further, the increase of the bank’s capital will provide additional liquidity to the financial operations carried out by the bank, thereby strengthening the UAE economy,' he commented.
DIB reported Dh1.73 billion in net profit for 2008, a marginal decline compared to Dh1.88 billion in 2007, excluding an extraordinary gain on transfer from a DIB subsidiary.
The distribution of a cash dividend of 25 per cent and bonus shares of five per cent for the year 2008 was approved at the bank’s AGM.
DIB will continue to build upon its many achievements in 2008, including the launch of its legal subsidiary, Dar Al Sharia Legal & Financial Consultancy; a new joint venture with Jordan Dubai Capital and Dubai International Capital, via a strategic investment in Industrial Development Bank, which is being converted into Jordan Dubai Islamic Bank.-TradeArabia News Service