Finance & Capital Market

Dubai Islamic H1 net profit soars 13pc to $735m

Dubai Islamic Bank, the largest Islamic bank in the UAE, has posted a net profit of Dh2.753 billion ($749 million) for the first half (H1) of the year, as against Dh2.441 billion in H1 2018, marking a year-on-year (YoY) rise of 13 per cent.

Total Income increased to Dh6,982 million, up by 25 per cent compared to Dh5,577 million and Net Operating Revenue grew to Dh4,699 million, up 16 per cent compared to Dh4,036 million in H1 2018.

Operating expenses stable at Dh1,201 million vs Dh1,187 million in H1 2018. Cost to Income ratio improved to 27.8 per cent during H1 2019.

Mohammed Ibrahim Al Shaibani, director-general of The Ruler’s Court of Dubai and chairman of Dubai Islamic Bank, said: “With the constant evolution of an efficient and robust governance model and progressive approach to infrastructure development, the UAE now ranks amongst the leading global markets for business and economic competitiveness.

“The opening up of key economic sectors for foreign ownership will lead to increased investment and higher employment opportunities for the domestic economy as the country retains its position as an attractive place to do business.”

“With double digit rise in profitability, the bank remains in a strong position to capture opportunities in the market whilst delivering robust growth and returns for all stakeholders,” Al Shaibani added.

Dubai Islamic Bank managing director Abdulla Al Hamli said: “We continue to sustain the growth of our balance sheet evidenced by the consistent increasing market share of DIB in the industry over the past few years.

“The progress on digital ambitions continues with the launch of significantly enhanced products and services to the modern customer leading to a more personalized and secured banking journey that can be experienced anytime and anywhere.”

Dubai Islamic Bank Group chief executive officer Dr Adnan Chilwan said: “We have built a dynamic, flexible and adaptive organization that can sustain business and growth in any kind of economic environment.                                                                                                                                                                                                               
“Whilst we continue to show robust balance sheet growth, profitability is and will always remain the key area of focus for DIB, evidenced by ROA at 2.46 per cent and ROE at 18.5 per cent, which is amongst the strongest in the market.”

“Fostering a culture of growth in the organization has been a key factor in the successful contribution from all businesses across wholesale and consumer, both now being ably supported by digital enhancements that have significantly strengthened our delivery and servicing capabilities across the entire breadth of our diverse customers base,” Dr Chilwan added.

“With more than $6 billion of sukuk issuances and nearly $11 billion in syndicated deals since the start of the year, the bank’s franchise continue to dominate the corporates and sovereigns business in the international Islamic capital market space.

“The discipline in managing our costs and focusing on efficiency building has yielded very strong results with net profit growing by 13 per cent YoY to reach Dh2.7 billion. Our cost to income is now at a historical low of 27.8 per cent.

“Our improving asset quality over the years is a result of the bank’s prudent and conservative approach to underwriting with quality credit building rather than balance sheet expansion at the core of the growth strategy,” Dr Chilwan concluded. – TradeArabia News Service