The Annual General Meeting (AGM) of Dubai Islamic Bank (DIB) held at the World Trade Center in Dubai has approved the bank’s financial results for the year ending December 31, 2002, along with a 10 percent dividend payment.
Assets at the bank rose by 28percent in 2002 to 19.6 billion Emirati dirhams ($5.34 billion) compared to Dh15.3 billion ($4.16 billion) in 2001 while customer deposits increased by 29 percent from Dh13 billion ($3.59 billion) to Dh17 billion ($4.62 billion), for the same period. The bank’s investment portfolio also reported significant growth of 24 percent rising to Dh11.8 billion ($3.2 billion) from Dh9.5 billion ($2.6 billion) in 2001.
Positive growth was also recorded in shareholder equity which rose from Dh1.2 billion ($337 million) in 2001 to Dh1.6 billion ($428 billion) in 2002 while shareholders’ profits rose to Dh160 million ($43.6 million) from Dh152.5 million ($41.5 million) for the same period. Total income in 2002 increased to Dh882 million ($240 million) and net income for the year, including depositors’ share, was Dh601 million ($164 million).
As one of the United Arab Emirates (UAE)’s leading banks in promoting transparency and compliance with international reporting norms, the bank’s subsidiaries’ financials were consolidated in the year 2002 results, in line with IAS.
Commenting on the results, the bank’s Chairman, Mohammad Khalfan Bin Kharbash, UAE Minister of State for Finance and Industry, said, “The bank’s performance reflects its ability to manage the dynamics of the local market in addition to global economic challenges. The high growth rate is indicative of its pioneering position and the high level of trust that it has built.”
Kharbash said that the significant growth in customer deposits clearly reflects this adding that consumer confidence had never been higher. Kharbash also noted “the rise in shareholder equity has clearly strengthened the bank’s capital base and provides a solid foundation for the further development of flexible and innovative finance and investment products.”
In the year 2002, DIB launched a range of new products and services including its online and mobile banking services. DIB also undertook major Information Technology (IT) upgrading throughout its operations, expanded its Automated Teller Machines (ATM) network and opened three new branches on Shaikh Zayed Road, Dubai, in Khorfakhan and at the Al-Ain Mall in Al-Ain.
The bank also undertook direct investments during the course of 2002 such as the establishment of the Dubai Islamic Insurance and Reinsurance Company (AMAN). DIB also recruited UAE nationals brining the level of Emiratization of its 795-strong workforce to 31 percent.
Established on 1975, Dubai Islamic Bank is considered to be the first Islamic bank in the world that has implemented the principles of Islam in all its practices. The economic and business philosophy of Islam encourages generation and sharing of profits. However, it forbids giving or taking of interest. – (menareport.com)
© 2003 Mena Report (www.menareport.com)
