DIB repays $1.2bn UAE emergency funds
Dubai, April 6, 2013
Dubai Islamic Bank (DIB) has repaid the entire amount of Dh3.75 billion ($1.02 billion) it had received in emergency funds from the UAE Ministry of Finance in 2008 to cope wit the global financial crisis.
Announcing the achievement, CEO Abdulla Al Hamli said the bank had repaid the deposit, in full and well ahead of contractual maturity, thanks to its robust financial position and strong liquidity.
He thanked the Government of UAE, the Ministry of Finance and the Central Bank for the decisive and timely measures taken during the crisis to support the banking sector in shoring up liquidity and ensuring seamless performance of the financial system of the country.
In March 2013, DIB had successfully priced a $1 billion Tier 1 Capital-eligible issuance, with a perpetual (non-call 6) maturity which will provide a significant boost to the current Tier 1 Capital ratio, he added.
Commenting on the move, deputy CEO Dr Adnan Chilwan said, “2012 has been a solid year for Dubai Islamic Bank and the bank is now well established on a growth strategy aligning itself to the improved market conditions in Dubai and the UAE."
In March last year, DIB had repaid its maturing $750 million sukuk from its own resources and the robust liquidity position had enabled it to settle the UAE Ministry of Finance deposit as well.
Dr Chilwan pointed out that its recent $1 billion Tier 1 Capital-eligible issuance was extremely well received by investors across the globe, as was proved by its oversubscription a record 14 times.
"This landmark achievement has pushed the bank’s Tier 1 capital ratio from 13.9 per cent to 18.7 per cent, based on year end 2012 balance sheet size, putting us on a strong footing for growth as the market continues to improve," stated the official.
DIB group had reported a net profit of Dh1.19 billion for the 12 months ended December 31, 2012, up 13 per cent when compared to Dh1.05 billion the year before.
The bank also continues to boast one of the best liquidity ratios (88.7 per cent as December 2012) in the market.-TradeArabia News Service