Dubai Islamic Bank (DIB), the first Islamic bank in the world and the largest Islamic bank in the UAE by total assets, posted a net profit of Dh4.05 billion ($1.10 billion) for the year ended December 31, 2016, up 6 per cent compared with Dh3.839 billion in 2015.

Total income increased to Dh8.636 billion, up 14 per cent compared with Dh7.546 billion in 2015. The net operating revenue increased to Dh6.761 billion, up 4 per cent compared with Dh6.489 billion in 2015.

Impairment losses declined to Dh392 million compared with Dh410 million in 2015. Cost to income ratio remained stable at 34 per cent compared with 34.3 per cent in 2015.

Net interest margins stood at 3.23 per cent compared with 3.63 per cent in 2015. Net fees and commission increased by 10 per cent to Dh1.425 billion from Dh1.295 billion in 2015.

Asset growth remains robust
The bank’s net financing assets rose to Dh115 billion up by 18 per cent, compared to Dh97.2 billion in 2015. Sukuk investments increased to Dh23.4 billion, a growth of 17 per cent, compared to Dh20.1 billion in 2015.

Total assets stood at Dh175 billion, an increase of 17 per cent, compared to Dh149.9 billion in 2015.

Steady growth in customer deposits
Customer deposits stood at Dh122.4 billion compared to Dh110.0 billion in 2015, up by 11 per cent. Casa constituted 39 per cent of total deposit base compared to 41 per cent in 2015.
The bank’s capital adequacy ratio remained strong standing at 18.1 per cent vs 15.7 per cent in 2015.

Earnings per share stood at Dh0.67 in 2016 vs Dh0.74 in 2015, a marginal impact despite dilution due to rights issuance.

Mohammed Ibrahim Al Shaibani, director-general of The Ruler’s Court of Dubai and chairman of Dubai Islamic Bank, said: “Despite global economic and political volatility, Dubai Islamic Bank achieved a number of important milestones and further strengthened its position as a market leader in 2016. DIB continues to expand its business in line with the UAE’s impressive growth trajectory and remains committed to supporting the Government’s agenda to become the Islamic finance capital of the world.

“Whilst financial performance and growth continue to drive the strategy, the board and management also remain focused on delivering the highest levels of corporate governance and setting the standard in compliance.The board and the management are committed to our objectives, both around the organization’s future and the future and progression of Islamic finance as it continues to grow and prosper as a viable and critical part of global economics,” he said.  –TradeArabia News Service