Dubai Islamic Bank (DIB) today announced its financial results for the first nine months of 2006, displaying strong performance across the board. DIB’s net profit increased by 26% touching AED 1.02 billion at the end of 30th September 2006, compared to AED 809 million for the same period last year.
During the same period, the profit before distribution to depositors touched AED 2.2 billion, registering a growth of 50% when compared to AED 1.4 billion in the corresponding period of 2005.
DIB’s total assets grew by a record 59% to AED 53.3 billion at the end of 30th September 2006, as compared to AED 33.4 billion in the corresponding period of 2005. The Financing and Investing activity achieved a significant increase of 64% to reach AED 31.9 billion, compared to AED 19.5 billion in the corresponding period of 2005.
Customer deposits also showed strong growth of 49% to reach AED 41.3 billion in the nine months ended 30th September 2006 as compared to AED 27.7 billion in the corresponding period of 2005.
Dr. Mohamed Khalfan bin Kharbash, UAE Minister of State for Finance and Industry and Chairman of DIB, said: “The Bank’s impressive performance during the first nine months of this year is a manifestation of our strategy to diversify our products and services to meet the demands of the financial sector in the UAE. The results show a substantial rise in all the financial indicators of the bank and reflect the sustainable growth and success that DIB has achieved for the past few years. It is our endeavor to continue to roll out new products, strengthen our quality of services, and provide specialized financial solutions to corporates through strategic alliances & partnerships. I’m truly delighted to present yet another sterling performance by DIB.”
“DIB continues to consolidate its leadership position in the banking and finance sector by lead managing and arranging a series of landmark deals in various economic and business sectors. No wonder then, according to a recent Bloomberg ‘Underwriter Rankings’ report, DIB was rated as the world’s number one Sukuk underwriter. It is due to DIB’s significant ability to successfully structure complex large ticket deals that the bank received accolades from Euromoney as well,” he added.
DIB today stands well positioned to take advantage of the remarkable business and growth opportunities within the UAE and the region. “DIB’s international expansion plans are also aligned to take advantage of our inherent strength as a premier Islamic financial institution. The recent ‘A’ long-term and ‘A1’ short-term counter-party credit rating by Standard & Poor’s Rating Services to DIB bodes extremely well for our international plans,” he noted.
“We are on target to expand our branch network in the region and overseas to cross the 120 mark by the first quarter of 2008. Our aim is to have the largest network of branches when compared to all UAE based banks,“ he added.
“The unprecedented success and growth achieved by DIB has emanated from a variety of innovative Shari’a compliant products. Retail Banking has been instrumental in diversifying its product base with new products and services, Corporate Banking, Real Estate and Contracting businesses have successfully capitalized on the opportunities available in the market place. Investment Banking has shown tremendous ability to capture and convert some of the largest deals in the country and region. Finally, the Bank has effectively and profitably launched many new companies and subsidiaries covering a diverse range of businesses including real estate, financing arms, investment banking, brokerage, capital markets and advisory and corporate finance,” he concluded.
Financial Highlights
(AED Millions)
Jan - Sep 2006
Sep 05
(9 Months) Sep 06 (9 Months) Change %
Assets 33,437 53,302 59%
Deposits 27,732 41,305 49%
Financing 19,498 31,941 64%
Profit(before Depositors’ share) 1,465 2,201 50%
Net Profit 809 1,019 26%
Dubai Islamic Bank (DIB), established in 1975, is the first Islamic bank to have incorporated the principles of Islam in all its practices. DIB is a public joint stock company and its share is quoted on the Dubai Financial Market. The bank enjoys a reputation as a leader and innovator in maintaining the quality, flexibility and accessibility of its products and services. In a very short space of time it has created market leading services and products that are setting benchmarks for the rest of the sector.
The bank’s recent financial results confirm the strength of its balance sheet and profitability. The bank reported net profit for the year ending 31st December 2005 of AED1.061 billion rising by 130 per cent compared to AED461 million in 2004. The profit for the bank, including depositors’ profits, reported a 97 per cent increase for the year ending December 2005 at AED2 billion compared to AED1.017 million for 2004.
The bank has been proactive in creating partnerships and alliances at local and international level. DIB has adapted an aggressive expansion strategy, which started with the establishment of DIB Pakistan Limited, a wholly owned subsidiary of DIB. The bank has also co-managed Pakistan’s US$600 million first Sovereign Islamic bond issue that received a tremendous response from investors. DIB opened its first representative office in Turkey to improve its access to that market. DIB has also acquired 60 per cent of its stake in Al Khartoum Bank and is also among the parents banks of Emirates and Sudan Bank (ESB). The steps taken mark DIB’s ambitious plans to roll out its operations into regional and international markets as part of its overall strategic plan.
DIB has also shown its outstanding capabilities by being appointed to provide specialist financial solutions for huge developmental projects including the Dubai Ports, Customs & Free Zone Corporation (PCFC) $3.5 billion Sukuk, the world’s largest, and Dubai’s Department of Civil Aviation US$1 billion Islamic bond issue. The issue was arranged to raise funding for the second phase of the expansion of Dubai International Airport. The bank also managed financing of US$350 million for Nakheel. The financing made further capital available to build on Nakheel’s blue chip portfolio of developments such as The Palm in Dubai.
