Tuesday 2 June 2020

Dubai Islamic Q1 net profit up 12pc to $369m

DUBAI, April 23, 2019

Dubai Islamic Bank, the largest Islamic bank in the UAE, has posted a net profit of Dh1,355 million ($369 million) for the first quarter (Q1) of the year as compared to Dh1,211 million for Q1 2018,marking an increase of 12 per cent.

Total Income increased to Dh3,407 million, up by 26 per cent compared to Dh2,697 million, while Net Operating Revenue grew to Dh2,307 million, up 17 per cent compared to Dh1,971 million.

Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and chairman of Dubai Islamic Bank, said: “The UAE’s GDP continues to grow crossing $400 billion following successful structural reforms, strengthening of fiscal policies as well as growth in the non-oil sectors. The implementation of various initiatives set out to attract investors and businesses are paving the way for sustained growth in the UAE in the years to come.”

“The banking sector remains resilient with strong capitalization and rising profitability. DIB continues to progress with  robust set of first quarter results with total income growing by 26 per cent to reach to Dh3.4 billion driven by consistent strong growth across our businesses.

“Global market optimism is returning as reflected by the positive index performances as well as increasing trade volumes in the UAE financial markets since the start of the year,” he added.

Dubai Islamic Bank managing director, Abdulla Al Hamli, said: “Global oil prices continue its upward trend since the start of the year. This, together with stimulus initiatives being put in place, will boost economic activity within the UAE and promote public spending as well as heightened private and public sector confidence.

“As digital technology and innovation makes further inroads into the financial industry, DIB ensures that the bank is at the forefront of these events with the launch of a digital lab, which will be the home of digital innovation and advancement for the bank.”

Dubai Islamic Bank Group chief executive officer, Dr Adnan Chilwan, said: “DIB’s growth is synonymous with that of UAE. We have proven that year-on-year, quarter-on-quarter. Our latest, 1st Quarter net profit has grown by 12 per cent, reaching Dh1.3 billion. DIB continues to deliver on all fronts by constantly evolving it’s business model based on the needs of its flourishing customer base.”

“Steady growth in deposits supported by robust capital has ensured the balance sheet crosses Dh226 billion. Efficiencies continue to strengthen our P&L with cost income ratio now at28.1 per cent.

“The reaffirmed credit ratings with a stable outlook reiterate the bank's strong balance sheet positioning. ever-growing profitability, and it’s financial standing as a leading player in the region.

“What is encouraging is the support and confidence that investors are extending towards DIB. The successful AT1 Basel llI-compliant sukuk issuance earlier this year shows that our engagement strategy with our investors is clearly helping to further boost the market confidence in the institution. Efficiency and returns remain a key part of our growth plans evidenced by Net Profit Margin climbing to3.19 per cent.

“We are making steady inroads in digitisation and innovation. Our aspirations to be an always-on financial institution are well under way with the successful unveiling of a hub for digital innovation, the DIB Digital Lab,” he added. – TradeArabia News Service


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