Dubai Islamic Bank net profit grows 61% to Dhs2.5bn

The results were announced following a meeting of the Board of Directors held on Wednesday, January 30, 2008. The Board proposed a bonus share of 15% and a cash dividend of 40% for the year 2007.

The bank recorded a total revenue of Dhs7bn for the year ended December 31, 2007, rising by 46% compared to Dhs4.8bn for the year ended December 31, 2006. The profit for 2007, including depositors' profits, stood at Dhs5.2bn, an increase of 58% compared to Dhs3.3bn for the year ended December 31, 2006.

Total assets in 2007 reached to Dhs84.3bn, an increase of 31% compared to Dhs64.4bn in 2006.

Financing and investment operations also delivered strong growth, with total investment and financing assets, including investments in sukuks, reaching at Dhs48.9bn compared to Dhs35.2bn over last year, an increase of 39%.

Customer deposits also showed aggressive growth of 36% over last year, reaching Dhs64.8bn in 2007 compared to Dhs47.7bn in 2006.

Dr. Mohammed Khalfan Bin Khirbash, Minister of State for Finance and Industry and Chairman of DIB, said: "With the Grace of Allah, 2007 was a landmark year in Dubai Islamic Bank's history, with immense contributions from all quarters. DIB signals another year of excellence as it consolidates its leadership position, sets standard for excellence and contributes to the development of the national economy."

He noted:

"During 2007, DIB managed to build strong partnerships with recognised international financial institutions and tapped into the project market boom sustained by high oil price, high liquidity, strong government support and low interest rates."

Dr. Khirbash added: "The bank launched various innovative products and services and diversified its investment and financing base in the local market. DIB also expanded its investment activities with Millennium Capital Limited, the investment banking subsidiary of the Dubai Islamic Bank Group, which was the first Category 1 licensed Islamic investment bank to operate from the Dubai International Finance Center."

As part of its vision to launch specialized companies that create value and meet the increasingly sophisticated demands of the market place, DIB also successfully completed the Initial Public Offering of Deyaar Company, one of the fastest growing real estate companies in the region. The IPO was over-subscribed by 14 times, collecting Dhs45bn. The success of the IPO confirms the high confidence of investors in DIB's initiatives in the fields of investment, real estate development, advisory, private equity funds and others.

During 2007, DIB also announced the world's first Shariah, legal and financial consultancy firm to provide solutions for the financial structuring, legal documentation and product development needs of the Islamic finance industry. In the real estate finance area, DIB launched the Al Islami Escrow Account - the first escrow "Trust" account service in the region designed specifically for real estate developers. The bank also implemented an expansion plan, increasing its network to 48 branches in the UAE.

The bank launched 12 investment funds during 2007, with unique and innovative structures that cater to customers in different fields. DIB also opened the Al Islami GCC Centre, a one-stop-shop for the bank's non-resident wealth management clients.

In recognition of its leading role in the local and international arenas, DIB received a number of awards for 2007, including the Best Islamic Credit Card Award at the inaugural Banker Middle East Product Awards. The bank also received the Middle East e-Banking Award and the UAE's Best Investment Management Bank by Liquid Real Estate, a part of Euromoney magazine. Additionally, DIB picked up the Best Islamic Bank Award and the Best Islamic Finance Wealth Management Firm Award at the Islamic Business and Finance Awards.

2007 also saw DIB launching the Dubai Islamic Bank Training Academy, which will provide staff with skills and insights to better meet the needs of the bank's clients across the country and the wider region. As part of its commitment to social responsibility, the Bank launched the DIB Foundation to conduct several upliftment initiatives in the community.