Dubai Islamic Bank (DIB), the first Islamic bank in the world and the largest Islamic bank in the UAE by total assets, today reported a group net profit of Dh2.143 billion ($583.45 million), for the first half of this year, up 7 per cent compared with Dh2.004 billion ($545.6 million) for the same period in 2016.

Total income increased to Dh4.865 billion, up 15 per cent compared with Dh4.235 billion for the same period in 2016, it said.

Net operating revenue increased to Dh3.676 billion, up 10 per cent compared with Dh3.356 billion for the same period in 2016.

Efficient and proactive cost management led to operating expenses remaining nearly flat at Dh1.162 billion compared to Dh1.151 billion for the same period in 2016, the bank said.

Gross cost of credit risk reduced to 55 bps compared to 75 bps for the same period in 2016. Cost to income ratio declined to 31.6% compared with 34.0% at the end of 2016.

Asset growth remains robust
Net financing assets rose to Dh125.4 billion, up by 9 per cent compared to Dh114.9 billion at the end of 2016.

Sukuk investments increased to Dh26.4 billion, a growth of 13 per cent compared to Dh23.4 billion at the end of 2016.

Total assets stood at Dh193.1 billion, an increase of 10 per cent, compared to Dh174.9 billion at the end of 2016.

Asset quality remains resilient
NPA ratio continued its downward trajectory improving to 3.6 per cent, compared to 3.9 per cent at the end of 2016, the bank said. Provision coverage ratio improved to 120 per cent, compared to 117 per cent.

Customer deposits stood at Dh141.4 billion compared to Dh122.3 billion at the end of 2016, up by 16 per cent. CASA deposits increased by nearly 13 per cent to Dh53.5 billion from Dh47.4 billion as at end of 2016 leading to a robust 38 per cent constitution of the total deposit base. Financing to deposit ratio stood at 89 per cent.

Earnings per share stood at Dh0.37 at the end of first half 2017 and return on assets was steady at 2.34 per cent. Return on equity stood at 18.4 per cent.

Mohammed Ibrahim Al Shaibani, director-general of His Highness The Ruler’s Court of Dubai and chairman of Dubai Islamic Bank, said: “The UAE retains its strong economic fundamentals following an upgrade in its credit outlook to “stable” during the quarter from Moody’s. The non-oil economy, which is expected to grow above 3 per cent this year, will be a key driver towards the economic growth of the UAE in the coming years.

“DIB continues to show remarkable progress with total income now reaching nearly Dh5 billion, a significant increase of 15 per cent compared to the same period last year. Our international expansion is on track as the bank officially received its license in April from the Central Bank of Kenya to start our operations. This paves the way for the bank’s aspirations in Africa and proliferation of Islamic finance across Asia, Middle East and the East African Belt.” – TradeArabia News Service