Dubai Islamic Bank Group net profit increases

Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE by total assets, reported on Wednesday a group net profit of AED2.14 billion in the first half of 2017, up 7 per cent compared to AED2 billion for the same period last year.
Total income increased to AED4.86 billion, an increase of 15 per cent compared to AED4.23 billion for the same period in 2016. Net operating revenues increased to AED3.67 billion, up 10 per cent compared with AED3.35 billion for the same period in 2016.
Net financing assets rose to AED125.4 billion, up by nine per cent as against AED114.9 billion at the end of 2016. Sukuk investments increased to AED26.4 billion, a growth of 13 per cent, compared to AED23.4 billion at the end of 2016.
Total assets stood at AED193.1 billion, an increase of 10 per cent, compared to AED174.9 billion at the end of 2016. Customer deposits stood at AED141.4 billion compared to AED122.3 billion at the end of 2016, up by 16 per cent.
Capital adequacy ratio remained strong, standing at 16.6 per cent as against 12 per cent minimum required.
Mohammed Ibrahim Al Shaibani, Chairman of DIB, said Shariah-compliant bank continues to show remarkable progress with total income now reaching nearly Dh5 billion.
"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," Al Shaibani said.
Dubai Islamic Bank Group Chief Executive Officer Dr. Adnan Chilwan, said the Islamic bank "continues to demonstrate robust earnings on the back of strong and unyielding focus on key economic growth sectors in the markets and jurisdictions we operate. The nine per cent growth in financing assets supported by the 16 per cent rise in customer deposits clearly showcases the franchise's incredible ability to continue to generate liquidity at will while simultaneously deploying the same in quality earning assets. With liquidity pressure easing this year along with hikes in Fed rates, we expect relative improvement in margins, as a significant portion of our financing book will have a favourable impact due to its variable pricing nature."

Source: Wam