Dubai Islamic Bank (DIB) today reported a net profit of Dh245 million ($66.7 million) for the first quarter, an increase of 11 per cent compared to Dh222 million during the same period of 2011.

The bank demonstrated sustained growth across its core operations, said a statement. 

DIB reported a total revenue of Dh1.23 billion compared to Dh1.28 billion in the first quarter of 2011.

As of March 31, 2012, the bank’s total assets stood at Dh92.5 billion; customer deposits stood at Dh68.1 billion, an increase of 5 per cent compared with Dh64.7 billion as of December 31, 2011.

The bank’s core business continued to grow in the first quarter of 2012, with income from financing and investing assets and investment sukuks increasing by 2 per cent, it said.

DIB maintained a financing-to-deposit ratio of 77 per cent as of March 31, 2012, providing a clear indication of the bank’s strong liquidity position. The bank also reported a robust Basel II capital adequacy ratio of 18.2 per cent as of March 31, 2012.  DIB continued to strengthen its balance sheet with additional provisions of Dh299 million during the first quarter of 2012. 

“DIB’s strong start to the year is testament to the bank’s proven business model, robust liquidity position and stable funding base,” said Mohammed Ibrahim Al Shaibani, chairman. “The recent repayment in full of a $750 million five-year Sukuk further underlines the bank’s financial strength, and positions DIB to continue playing a full and active role in the on-going economic development of the UAE.”

DIB opened three new branches during the first quarter of 2012, taking its UAE-wide network to a total of 74 branches. The quarter also saw the launch of Al Islami Business Online, a portal enabling companies to access over 75 services at the click of a button.

“DIB has begun 2012 where it left off in 2011 by reporting strong and sustained growth across its core operations,” said Abdulla Al Hamli, chief executive officer of DIB. “Our continued investment in both bricks and mortar and alternative distribution channels has served to further reinforce DIB’s status as the UAE’s leading Islamic bank.” - TradeArabia News Service