Dubai Islamic Bank Q1 profit up 17pc
Dubai, April 14, 2013
Dubai Islamic Bank Group (DIB) said it has registered strong growth across all areas during the first half with a 17 per cent jump in its net profit which hit Dh301.7 million, compared to Dh258.5 million last year.
The Islamic lender said its total assets soared from Dh98.7 billion as at December 31, 2012 to hit Dh120.6 billion, thus posting a substantial 22 per cent increase in the first quarter of 2013.
As of March 31, 2013, the DIB customer deposits stood at Dh88.3 billion, compared to Dh66.7 billion as at December 31, 2012, an increase of 32 per cent, said the Dubai bank in its statement.
Notably, DIB’s Tier 1 capital ratio strengthened significantly in the first quarter, from 13.9 per cent on December 31, 2012, to 17.7 per cent on March 31, 2013. Similarly, the bank’s total capital adequacy improved from 17.4 per cent on December 31, 2012, to reach 21.2 per cent on March 31, 2013.
Commenting on the results, chairman Mohammed Ibrahim Al Shaibani said, “DIB’s performance in the first quarter reflects the robust health of the UAE economy and the positive outlook for the country’s banking sector.”
“With our long-term funding requirements secure, DIB is now clearly on a path of sustained growth and will continue to play a leading and active role in the ongoing development of the UAE economy,” he added.
In March 2013, DIB successfully raised a $1 billion Tier 1 Capital-eligible issuance, with a perpetual (non-call 6) maturity. The issuance, which carried a profit rate of 6.25 per cent, represented the best yield ever achieved by a GCC bank on a public Tier 1 transaction and provided a significant boost to the bank’s tier 1 Capital ratio.
The issuance was extremely well received by investors across the globe, evidenced by the fact that it was oversubscribed 14 times.
CEO Abdulla Al Hamli said DIB's performance in the first quarter was notable for simultaneously delivering strong profit growth while significantly improving our capital positions.
"As we look forward to the remainder of 2013, we will continue to develop and introduce innovative products and services to meet the needs of our large and loyal customer base," he added.
DIB had last week repaid the Dh3.75 billion deposit, in full and well ahead of contractual maturity, which it received from the Ministry of Finance in 2008 citing robust financial position and strong liquidity as the key drivers for the decision.-TradeArabia News Service