Dubai Islamic Bank outlines 2009 growth strategy

Despite extremely challenging financial conditions globally, the bank projects that the expansion of its retail banking business, including 10 new branch openings in the UAE this year, will contribute significantly to its projected annual balance sheet growth and will account for approximately 47% of the bank's revenue for 2009.

By the end of this year, DIB forecasts that its customer base will increase by approximately 15%, reaching some 900,000 customers, while the bank's retail assets business will grow by approximately 20%. The bank plans to not only focus on traditional bricks-and-mortar branches but also has a strategy to enhance its network through Al Islami Express Banking Centres as well as state-of-the-art technological channels.

"While we recognise the challenges that lie ahead, we are confident that the bank's 2009 growth strategy will deliver significant, sustained returns," said Khaled Al Kamda, Group Managing Director, Dubai Islamic Bank. "With a renewed focus on our already robust retail operations, DIB will continue to expand its customer base while diversifying its income sources. Importantly, this strategy will allow the bank to continue to strengthen its overall risk profile, which is especially critical given current market conditions."

"Enhancing the bank's existing corporate governance structures and risk architecture is also a primary focus area for 2009," he added, pointing out that 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.

In line with its vigorous corporate governance standards, the bank additionally made impairment provisions totaling Dhs496m related to its exposure to CCH and related individuals. DIB has already foreclosed on The Plantation, a major development in Dubailand covering a total area of more than 20 million square feet, and continues to actively pursue other securities related to this historical transaction. DIB believes that the current provisions together with collaterals forcelosed and being pursued are adequate to cover its exposure to CCH, even in the current economic downturn.

"As we move forward with our 2009 growth strategy, we are pleased to close this chapter and focus our complete attention on meeting the needs of our clients, shareholders and other stakeholders," said Abdulla Al Hamli, Chief Executive Officer, Dubai Islamic Bank. "DIB remains a solid and trusted financial institution, with a growing customer base, strong deposits and sterling overall performance. We look forward to consolidating this position in the months to come."

DIB has won the respect of its peers around the world for many years, and its leading position has been reaffirmed by the 34 awards that it won in 2008 across the retail, corporate and investment banking space. The bank was recently named 'Best Islamic Bank' for the fourth consecutive year by Banker Middle East magazine. DIB has also received many awards from international organisations, such as the prestigious 'Bank of the Year' award from The Banker (Financial Times), along with prestigious accolades from UK-based Euromoney and New York-based Global Finance magazines.