Dubai-based Noor Islamic Bank said today that it posted a net profit of Dh511 million ($138.85 million) for the year ended December 31, 2008, the first full year of its operation.

A bank statement said it was on a firm footing for continued growth.

The bank also reported total assets of Dh21.8 billion and total deposits of Dh12.4 billion. The bank expects prudent growth in assets during the current year with greater emphasis on enhancing margins while ensuring strong focus on risk management fundamentals, the statement said.

Operating expenses for the period, including initial set-up costs, amounted to Dh780 million. This includes Dh247 million for the period prior to commencement of operations.

The bank generated net income from investments of Dh231 million after distribution to investment account holders, including banks and other financial institutions. Over 9 per cent of total income derived from fees amounting to Dh144 million.

Sheikh Ahmed bin Saeed Al Maktoum, chairman of Noor Islamic Bank said: “Noor Islamic Bank has been established to offer world class financial services products coupled with service levels on par with the world’s leading banks. In its first period of operations, the bank’s performance has been underlined by strong financial results, significant organizational developments and unrivalled business success.

“In 2009, the bank will continue to diversify its revenue stream and customer base, whilst continuously enhancing its existing platform for sustained growth and value creation thereby contributing towards the development of the UAE’s economy.”

Hussain Al Qemzi, group CEO of Noor Islamic Bank, said: “Despite the global economic crisis, the bank successfully registered solid financial performance in its first year of operations. We have made substantial progress to grow our balance sheet and expand our presence across the UAE. We remain confident of maintaining positive revenue growth from our banking operations.

“The current economic situation remains a major challenge as we adapt our business model to the evolving market scenario. We have implemented decisive action plans to grow our business in the UAE and maintain sustainable growth over the next 12 months.”

Noor Islamic Bank has a paid-up capital of Dh3 billion and maintains capital ratios of 15.92 per cent, well above the minimum central bank requirement of 10 per cent, the statement said.

The bank has branches in 14 locations across the emirates of Abu Dhabi, Dubai and Sharjah. The electronic banking network stands at more than 84 ATMs spread across the UAE with plans to grow this number.

The bank is also a major participant in debt and capital market transactions, leading more than 12 global transactions with an aggregate volume of over $16 billion. –TradeArabia News Service