Dubai Islamic Bank's first half net profit reaches Dhs1.3bn, up 47%

In the first half of 2008, the bank's net profit reached Dhs1.303bn, an increase of 47% compared to Dhs888m for the corresponding period last year, excluding the gain on transfer of interest in a DIB Subsidiary.

The bank's net-profit growth in the first half of this year highlights the strength of its core operations, business fundamentals and overall financial performance.

At the end of the first six months of this year, the bank's total assets stood at Dhs91.4bn, up 21% compared to Dhs75.5bn at the end of first half of 2007.

Financing and investment activities increased 34% in the first half of 2008, reaching Dhs60.8bn, up from Dhs45.3bn in the same period of 2007.

Customer deposits showed strong growth of 22%, reaching Dhs72.8bn in the first half of 2008, compared to Dhs59.7bn in the first half of 2007.

His Excellency Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler's Court of Dubai and Chairman of Dubai Islamic Bank, said:

"On behalf of Dubai Islamic Bank, I am very pleased to share the bank's financial results for the first half of this year, which reflect a consistent trend of strong growth that dates back to many previous years. This trend is characterised by underlying business fundamentals, as opposed to one-off benefits, and we have ambitious plans that will enable us to continue this growth throughout 2008 and in the years to come. Our strategy of diversifying revenues and operations has paid dividends, and we will continue to execute this strategy going forward."

DIB, the world's first Islamic bank, remains committed to playing a leadership role in the financing sector by providing financial solutions, products and services that help government and semi-government organisations and private-sector firms realise their long-term growth potential.

In the first half of this year alone, DIB's wholly-owned investment banking arm arranged sukuk and syndication transactions in excess of Dhs20bn.

As a result, DIB rose to first place in the overall GCC Islamic Bond Tables, up from sixth place last year, according to the Bloomberg Underwriter Rankings published in July 2008.

DIB continues to join hands with strategic partners to successfully launch entities and 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.

In this regard, DIB announced the formation of a joint venture property company, Tashyed LLC, launched in partnership with Nakheel, one of the world's largest real estate developers.

This announcement underscores DIB's leading position in the real estate sector, which continues to witness significant and steady growth.

The bank's support in this regard is further demonstrated by its ongoing financing of new projects in the contracting sector, totaling Dhs25bn in overall project size in the first half of this year alone.

In the UAE, DIB continues to expand its branch network, bringing its total to 50 branches.

The bank also continued to demonstrate its commitment to the local community by participating in a range of corporate social responsibility activities in the first half of this year.

In recognition of its leading role in the global arena, DIB received many awards from respected publications in the first half of this year, such as the world's Best Islamic Retail Bank by Global Finance magazine; Best Islamic Bank and Best Islamic Credit Card at the Banker Middle East Awards; Best Islamic Bank and Best Call Centre in customer service levels according to Ethos Consultancy.