Noor Islamic Bank posts positive results in first period of operations

The bank achieved this net profit in its first full period of operations and is on solid footing for continued growth.

The bank also reported total assets of Dhs21.8bn and total deposits of Dhs12.4bn. The bank expects prudent growth in assets during the current year with greater emphasis on enhancing margins while ensuring strong focus on risk management fundamentals.

Operating expenses for the period, including initial set-up costs, amounted to Dhs780m. This includes Dhs247m for the period prior to commencement of operations.

The bank generated net income from investments of Dhs231mafter distribution to investment account holders, including banks and other financial institutions. Over 9% of total income derived from fees amounting to Dhs144m.

H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Noor Islamic Bank said:

"Noor Islamic Bank has been established to offer world class financial services products coupled with service levels on par with the world's leading banks. In its first period of operations, the bank's performance has been underlined by strong financial results, significant organizational developments and unrivalled business success. In 2009, the bank will continue to diversify its revenue stream and customer base, whilst continuously enhancing its existing platform for sustained growth and value creation thereby contributing towards the development of the UAE's economy."

Hussain Al Qemzi, Group CEO of Noor Islamic Bank, said: "Despite the global economic crisis, the Bank successfully registered solid financial performance in its first year of operations. We have made substantial progress to grow our balance sheet and expand our presence across the UAE. We remain confident of maintaining positive revenue growth from our banking operations.

"The current economic situation remains a major challenge as we adapt our business model to the evolving market scenario. We have implemented decisive action plans to grow our business in the UAE and maintain sustainable growth over the next 12 months."

Noor Islamic Bank has a paid-up capital of Dhs3bn and maintains capital ratios of 15.92 per cent well above the minimum Central Bank requirement of 10 per cent.

Noor Islamic Bank has steadily grown its presence since commencement of operations, opening branches in 14 locations across the emirates of Abu Dhabi, Dubai and Sharjah. The electronic banking network stands at more than 84 ATMs spread across the UAE with plans to grow this number to provide convenience and accessibility to its customers.

The bank is also a major participant in debt and capital market transactions, leading more than 12 global transactions with an aggregate volume of over US$ 16bn.

In recognition of its strong financial performance, Noor Islamic Bank has received numerous awards and recognitions and was honored by several globally renowned organizations including International Islamic Finance Forum, Bloomberg, Thomson Reuters, Newsweek magazine and Islamic Finance News.