Dubai Islamic Bank announces 2009 net profit of AED 1.2 billion
Dubai Islamic Bank (DIB) announced today its financial results for the 12 months ending December 31, 2009, demonstrating the bank’s resilience in the face of challenging global conditions, which continue to impact the performance of financial services firms worldwide.
For the full year 2009, DIB reported a net profit of AED1.2 billion. This decline is primarily due to the conservative and prudent approach adopted by the bank in continuing with the policy of enhancing provision for impairment from AED 520 million in 2008 to AED 818 million in 2009.
The bank announced these results today following a meeting of the Board of Directors of Dubai Islamic Bank, which has proposed a cash dividend of 20 per cent for 2009. This proposal is subject to ratification at the bank’s upcoming Annual General Meeting.
Despite the challenging environment, the bank’s top line revenue remained stable at AED 5.1 billion in 2009 versus 5.2 billion in 2008, showing robust core business and significant resilience to current economic environment.
DIB also announced today that its total assets as of December 31, 2009, stood at AED 84.3 billion, slightly lower than AED 84.6 billion at the end of the same period in 2008. The bank’s total financing assets reached AED 49.9 billion as of December 31, 2009, a slight decline compared to AED 52.7 billion in 2008, due to the bank’s conservative policy of managing the financing portfolio in these time.
In the 12 months ending December 31, 2009, customer deposits stood at AED 64.2 billion, compared to AED 62.6 billion at the end of 2008.
DIB maintained a very strong financing-to-deposit ratio of 78 per cent as of December 31, 2009, providing a clear indication of the bank’s healthy liquidity position despite challenging market conditions. The bank also reported a robust Basel II capital adequacy ratio of 17.5 per cent, as of December 31, 2009.
“As the global economy emerges from a phase of severe disruption and unprecedented volatility into a period of recovery, Dubai Islamic Bank is now uniquely positioned to further contribute to the continued economic growth and diversification of the UAE and wider region,” said His Excellency Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank.
“Dubai Islamic Bank has prudently managed its operations over the past 12 months, as reflected in the bank’s positive financial results and continued expansion of products and services,” he said. “We are very pleased to be able to share this sustained success with our shareholders, and remain grateful to them for their ongoing support.”
Last year, the bank focused on the expansion of its domestic retail banking business, including 11 new branches and express centres opening in the UAE in 2009 alone, contributing significantly to its annual balance sheet growth and accounting for 46 percent of the bank’s revenue last year.
In a clear sign of the success of that strategy, DIB’s customer base increased by 15 per cent last year, reaching approximately 900,000 customers as of December 31, 2009. DIB continues to focus on the opening of both traditional bricks-and-mortar branches while also enhancing its network through Al Islami Express Banking Centres as well as state-of-the-art technological channels.
Overseas, the bank’s Jordanian associate, Jordan Dubai Islamic Bank (JDIB), recently launched operations at its first and main branch in Amman, the Jordanian capital, which will be followed by an aggressive expansion of JDIB’s operations across the Kingdom, including the planned opening of a total of 10 branches by the end of this year.