Dubai Islamic Bank (DIB) announced its financial results for the three months ending March 31, 2012, demonstrating the bank’s sustained growth across its core operations.
For the first quarter of 2012, DIB reported a net profit of Dhs245m, an increase of 11% compared to Dhs222m in the corresponding period of 2011. Total revenue earned during this quarter was Dhs1.23bn compared to Dhs1.28bn in the first quarter of 2011.
As of March 31, 2012, the bank’s total assets stood at Dhs92.5bn. On the same date, customer deposits stood at Dhs68.1bn, an increase of 5% compared with Dhs64.7bn as of December 31, 2011. The bank’s core business continued to grow in the first quarter of 2012, with income from financing and investing assets and investment sukuks increasing by 2%.
DIB maintained a financing-to-deposit ratio of 77% as of March 31, 2012, providing a clear indication of the bank’s strong liquidity position. The bank also reported a robust Basel II capital adequacy ratio of 18.2% as of March 31, 2012. DIB continued to strengthen its balance sheet with additional provisions of Dhs299m during the first quarter of 2012.
“DIB’s strong start to the year is testament to the bank’s proven business model, robust liquidity position and stable funding base,” said His Excellency Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank. “The recent repayment in full of a $750m five-year Sukuk further underlines the bank’s financial strength, and positions DIB to continue playing a full and active role in the on-going economic development of the UAE.”
DIB opened three new branches during the first quarter of 2012. The branches in the Gold Souk in Deira, Al Baraha area, and Al Barsha Mall, bring the bank’s UAE-wide network to a total of 74 branches. The quarter also saw the launch of Al Islami Business Online, a portal enabling companies to access over 75 services at the click of a button.
“DIB has begun 2012 where it left off in 2011 by reporting strong and sustained growth across its core operations,” said Abdulla Al Hamli, Chief Executive Officer of DIB. “Our continued investment in both bricks and mortar and alternative distribution channels has served to further reinforce DIB’s status as the UAE’s leading Islamic bank.”
DIB won a number of accolades in the first quarter of 2012. In February, the bank won three awards at the Islamic Finance News awards in the “Corporate Finance,” “Restructuring” and “Structured Finance” Deals of the Year categories. This was followed in March with two awards at the Banker Middle East Product Awards 2012 in the “Best Distance Banking Service” and “Best Structured Product” categories.