Dubai Islamic Bank net profit grows 47 per cent to AED 1.56 billion

The bank reported AED 1.56 billion in net profit for the year ended December 31, 2006 rising by 47% compared to AED1.06 billion for the year ended December 31, 2005.

The results were announced following a meeting of the Board of Directors held on Sunday (January 21, 2007). The Board proposed a bonus share of 7% and a cash dividend of 35%.

The profit for 2006, including depositors' profits, stood at AED 3.3 billion, an increase of 65% compared to AED 2 billion for the year ended December 31, 2005.

Total assets in 2006 reached to AED 64.5 billion reporting an increase of 50% compared to AED 43 billion in 2005.

Financing and investment operations also delivered strong growth, with total investment and financing assets including investments in sukuks stood at AED 38.8 billion, an increase of 28% over last year.

Customer deposits also showed an aggressive growth of 43% over last year reaching AED47.7 billion in 2006.

For the fourth quarter of 2006, the bank reported net profit of AED 540 million, a rise of 114% compared to AED 252 million for the corresponding period in 2005.

Dr. Mohammed Khalfan Bin Khirbash, Minister of State for Finance and Industry and Chairman of DIB, said:

"2006 was a landmark year in Dubai Islamic Bank's history with immense contributions from all employees. DIB signals another year of excellence as it aggressively moves forward in the local, regional, and international arenas. The bank has expanded in UAE and internationally, and has further strengthened its position as a leader in banking and financing activities."

Dr. Khirbash continued: "The banks operations for 2006 were in line with the strategic objective and role set by DIB to support the national economic development, the prosperity of UAE and enhance UAE's position as an international hub. This was all achieved through the financial solutions provided by DIB. These products and services have helped huge government organizations and semi government entities as well as private organizations to benefit from such deals. Not only have these entities benefited from the financial solutions, but also from foreign investments channelled into the local market. Deals such as sukuks are testimony to DIB's efforts in providing innovating solutions in the market place."

He said: "DIB has joined hands with strategic partners to launch special purpose vehicles in the fields of investment, real estate development, advisory, private equity funds and others. These organisations offer services and products that cater to local and regional markets."

Dr. Khirbash noted: "DIB's achievements in 2006 include cementing our position as the world's premier Islamic finance house with a string of transactions, culminating in the world's biggest US$3.52 billion sukuk for the Nakheel Group."

"The total sukuks raised by DIB amounted to more than US$15 billion, an unprecedented amount in the history of Islamic Banking across the world. The figure accounts for almost 70% of all Capital Market (sukuk and conventional bonds) funding for public sector entities in the Emirates in the last two years. These sukuks also contributed to promote and strengthen the position of Dubai International Financial Exchange (DIFX) as it accounts for more than 90% of the total sukuks listed on DIFX," he added.

Dr. Khirbash said: "At a retail level, our innovations led to products such as the 'Al Islami personal finance' and 'Al Islami Credit Cards'.

DIB's branch network has grown by 340% since 2002, which makes it the fastest growing branch network in the UAE. DIB's branch network reached 40 branches in 2006. By the end of 2007 DIB's branch network will touch 52.

Dr. Khirbash said: "DIB had a distinguished performance wherein the bank entered new markets on the regional and international scenes by opening new branches, representative offices and investing in leading companies and active sectors."

As recognition of its leading role in the international arena, DIB has received many awards from international organizations such as the prestigious "Bank of the Year - UAE" award for 2006 by The Banker magazine and accolades from Euromoney as well. In 2006, DIB received international credit rating by Standard & Poor's and Moodys.

Dr. Khirbash also highlighted the ongoing Emiratisation programme and investment in human capital at the bank. He said: "With 43 per cent of our workforce being UAE national, we have the highest percentages of Emiratisation in the industry."