Al Hilal Bank, a major UAE-based bank, announced that its net profit for 2013 reached a record high of Dh441.4 million ($120.14 million), reflecting a 42 per cent increase as compared to the Dh310.3 million posted in 2012.

The record high net profit demonstrates an increase in return on equity to 12 per cent from 10.1 per cent in the previous year. The significant net profit upsurge for the full year of 2013 is largely attributed to growth in assets along with improvement in asset quality and liability mix.

Al Hilal’s assets at the end of 2013 stood at Dh38.71 billion, up by 20 per cent over 2012’s Dh32.12 billion.

The customers’ deposit has improved by 13 per cent, or Dh 3.2 billion, to Dh 28.2 billion within the same timeframe from Dh 25.0 billion at the end of 2012. 25 per cent of customers’ deposits were current and savings accounts. In addition, financings grew by 18.3 per cent or Dh 4.2 billion during 2013 to reach Dh 27.1 billion.

Mohamed Jamil Berro, the Group CEO of Al Hilal Bank, said: “Al Hilal Bank has been able to account for a significant share of the local banking market within the first five years of its existence.”

“The bank has continuously witnessed steady growth since its establishment, posting a return on equity of 12 per cent in 2013 from 7.8 per cent in 2010. This is a result of successful implementation of the Bank’s strategy which guides us setting ambitious targets, delivering innovation and value to customers and making business decisions,” he added.

The bank revealed that it is planning to open two new branches in the country within the year; bringing the number of branches to 24, which also includes three overseas branches in Kazakhstan. To date, Al Hilal Bank serves 85,000 customers. In 2013 alone, its customer base stood at 81,000 clients. The bank was also able to attract about 4,000 new customers in less than two and a half months this year.

At the end of 2013, the total equity grew by 12.5 per cent to reach Dh 3.93 billion which includes Dh 3.09 billion of paid-up capital from shareholders since the bank’s inception. Its nonperforming loans also improved to around 1.2 percent of the total financings in 2013, the lowest percentage recorded in the UAE.

Moreover, the bank attributed its significant growth to its commitment to provide innovative banking and financial solutions that are in line with the provisions of the Islamic Shari’a as well as its continuous efforts to contribute to the country’s economic and social expansion. The bank cited its strong support to the UAE Government’s Emiratisation programme. In 2013, UAE nationals comprised 34 per cent of its total manpower. The bank is working on further increasing this number in the coming years, said Berro.

“It has also been commended for integrating the latest technological innovations into its banking services that provides our customers with innovative channels to transact with us conveniently. Al Hilal Bank will soon be the first bank in the UAE to allow customers to use their Emirates ID cards to make ATM cash withdrawals,” Berro said. – TradeArabia News Service