AED 3 billion capital increase approved at DIB Extraordinary General Meeting

Published April 27th, 2009 - 04:49 GMT

AED 3 billion capital increase approved at DIB Extraordinary General Meeting

• Assembly approves conversion of AED 3.75 billion deposit into Tier 2 capital of DIB
• Assembly approves increase of DIB’s capital by AED 3 billion over a five-year period

Following the conclusion of its Extraordinary General Meeting (EGM), which was held today, Dubai Islamic Bank (DIB) announced that the assembly has approved the increase of the bank’s capital by AED 3 billion over a five-year period. The assembly has delegated the Board of Directors to implement this resolution.

The conversion of an AED 3.75 billion deposit granted to DIB by the Ministry of Finance into Tier 2 capital of the bank, pursuant to terms and conditions proposed by the Ministry of Finance, was approved at the EGM. The amendment of article 14 of the Articles of Association of the bank as a result of the capital increase was also approved at the EGM.

"By approving the capital increase, members of the assembly have demonstrated their support for DIB’s expansion plan aimed at protecting the lending position of the bank during the current global financial crisis. We look forward to their continued support in 2009 and in the years to come," said His Excellency Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank.”

Chairing the EGM, Sheikh Khaled Bin Zayed Al Nehayan, Vice Chairman of Dubai Islamic Bank, said: “The bank will sustain its commitment to contributing to the ongoing growth, stability and diversification of the UAE and all the markets we serve. Further, the increase of the bank’s capital will provide additional liquidity to the financial operations carried out by the bank, thereby strengthening the UAE economy.”

DIB reported AED 1.73 billion in net profit for 2008, a marginal decline compared to AED 1.88 billion in 2007, excluding an extraordinary gain on transfer from a DIB subsidiary. The distribution of a cash dividend of 25 per cent and bonus shares of five per cent for the year 2008 was approved at the bank’s AGM.

DIB will continue to build upon its many achievements in 2008, including the launch of its legal subsidiary, Dar Al Sharia Legal & Financial Consultancy LLC; a new joint venture with Jordan Dubai Capital and Dubai International Capital, via a strategic investment in Industrial Development Bank, which is being converted into Jordan Dubai Islamic Bank.

The bank’s current growth strategy – with a renewed focus on its already robust retail operations – will deliver significant results. By the end of this year, the bank expects to record a 15 per cent increase in its customer base, reaching some 900,000 customers, while the bank’s retail assets business will grow by approximately 20 per cent.

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