Dubai Islamic Bank announces 2008 net profit of Dhs1.73bn

DIB reported Dhs1.73bn in net profit for 2008, a marginal decline compared to Dhs1.88bn in 2007, excluding an extraordinary gain on transfer from a DIB subsidiary.

These results were announced following a meeting of the Board of Directors of Dubai Islamic Bank, which has proposed a cash dividend of 25% and bonus share of 5% for the year 2008.

DIB's total assets as of December 31, 2008, stood at Dhs84.6bn, up slightly compared to Dhs83.7bn at the end of the same period in 2007. Financing activity registered strong growth during the period, with total financing assets reaching Dhs52.7bn in 2008 compared to Dhs40.4bn in 2007, an increase of 30%. Customer deposits increased two per cent to reach Dhs66.4bn in the 12 months ending December 31, 2008, compared to Dhs65bn in 2007.

The bank maintained an extremely strong financing-to-deposit ratio of 79% as of December 31, 2008, a clear indication of DIB's healthy liquidity position. DIB also reported a robust capital adequacy ratio of 12.2% as of December 31, 2008.

DIB's full-year results reflect total impairment provisions of Dhs521m (including writedowns on its investment portfolio) and mark-to-market losses on equity investments of Dhs277m. The majority of these were recorded in the fourth quarter of the year, one of the primary reasons impacting profitability during the last quarter of 2008.

His Excellency Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler's Court of Dubai and Chairman of Dubai Islamic Bank said, "Over the past 12 months, the world has witnessed unprecedented challenges to the stability of the global financial system. During the same period, Dubai Islamic Bank maintained its single-minded commitment to providing innovative financial products and services that help government and semi-government organisations, private-sector firms and individuals weather the current storm and emerge stronger than before. As well, we continue to recognise the needs of our shareholders by sharing the bank's success with them."

"DIB has prudently managed its core operations during these challenging times. Our long-term strategy of the diversification of both operations and revenue streams continues to prove successful. Most importantly, we are very pleased to be able to continue to make a sustained contribution to the economic stability and diversification of the UAE and wider region," he added.

In 2008, Dubai Islamic Bank continued to work with strategic partners to launch new entities and special purpose vehicles in areas such as investment, real estate development, advisory and private equity. As well, through its wholly-owned investment banking arm, DIB arranged sukuk and syndication transactions that confirmed its ongoing leadership role in this area.