Thursday 4 June 2020

Mohammed Ibrahim Al Shaibani

Dubai Islamic 2017 net up 11pc to $1.22bn

DUBAI, January 17, 2018

Dubai Islamic Bank, the first Islamic bank in the world and the largest Islamic bank in the UAE, has posted net profits of Dh4.504 billion ($1.22 billion) in 2017, up 11 per cent compared to Dh4.050 billion ($1.22 billion) for 2016.

Total income increased to Dh10.199 billion, up 18 per cent compared to Dh8.636 billion for 2016. Net operating revenue increased to Dh7.687 billion, up 14 per cent compared to Dh6.761 billion for 2016.

Mohammed Ibrahim Al Shaibani, director-general of The Ruler’s Court of Dubai and chairman of Dubai Islamic Bank, said: “The UAE banking system retains its strong financial fundamentals with sector assets crossing the $700 billion mark, making it the largest in the GCC. The growth was supported by strong capitalization as well as robust profitability. 2017 has been another remarkable year for the bank as we continue to make progress on our growth and expansionary agenda in both local and international markets.”

“The bank has weathered the challenges across the region as well as those emanating from the global economic slowdown extremely well and with a more positive outlook forecasted for the UAE and global economy, the coming years look even more promising. We remain fully in sync with Dubai and the UAE’s plans in building a diversified and attractive economic hub for Islamic finance that serves to connect the globe from our home base here,” he added.

Dubai Islamic Bank managing director, Abdulla Al Hamli, said: “The UAE continues to be one of the leading Islamic finance markets, with assets now reaching around $150 billion, a 7 per cent growth this year. We remain well-positioned to capitalize on improving economic conditions in UAE, where GDP is expected to increase in 2018 in the run up towards major economic events such as the Expo 2020.

“Our ongoing investments in digital technology and services have transformed DIB into a more efficient and secure banking institution that is able to provide its customers with a highly enhanced banking experience across a diversified and robust network of branches and channels.”

Dubai Islamic Bank Group chief executive officer Dr Adnan Chilwan said: “The evolution in the last four years has seen a complete transformation in size and business with the balance sheet as well related key metrics of financing and deposits nearly doubling or more during the period. Further, the profitability has risen nearly three times with both ROEs and ROAs witnessing a steep climb as well. Simultaneously, the business model has completely transformed with a significantly more diversified portfolio minimizing concentration risks.”

“The momentum established in the first three year of growth has carried through from the preceding period with the bank registering another 16 per cent jump in the financing book in 2017. Despite this strong performance, liquidity remains intact with 91 per cent Finance to Deposit Ratio as the bank continues to preserve its capacity to maintain the impetus into the new year.

“Creating capacity to support growth and optimizing costs whilst maintaining a competitive edge in offerings and technology will also remain the key drivers in 2018. The constantly improving asset quality with NPF ratio falling below even the guided level to 3.4 per cent has been the result of robust and superior underwriting, a fact recognized by the rating agencies with upgrades and stable outlooks crowning DIB’s performance in 2017.

“As we enter the second year of the bank’s Growth 2.0 strategic agenda, you will see us remain focused on the quality opportunities within our home base of Dubai and the UAE and the three key “PIK” markets which denote our international forays into Pakistan, Indonesia and Kenya,” he added. – TradeArabia News Service

Tags: Dubai Islamic | 2017 profit |

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