Noor Islamic Bank to attain capital adequacy ratio in excess of 20%

The bank also announced its shareholders and board of directors had approved the proposed conversion of the 2008 UAE Government - Ministry of Finance deposits into Tier-2 Capital to further strengthen the bank's balance sheet.

The conversion option was offered to all UAE banks as part of the Ministry of Finance's original Dhs50bn deposit injection and does not result in any issuance of equity shares to the Ministry of Finance.

The bank will achieve a capital adequacy ratio (CAR) in excess of 20%, up from 15.92% as reported on 31 December 2008, and well above the current minimum UAE Central Bank requirement of 10%.

Tier-1 capital includes equity capital and disclosed reserves, while Tier-2 capital refers to secondary capital that includes undisclosed reserves, general loss reserves, and subordinated term debt.

Hussain Al Qemzi, Group CEO, Noor Islamic Bank, said:

"For the past 18 months, Noor Islamic Bank has leveraged its reputation for delivering on its commitments. The strong first year helped us establish our business and demonstrated our capability as a significant contributor to the region's banking sector. The conversion of government deposits into Tier-2 capital places the bank in a strong position to weather the challenging economic environment. With our capital adequacy ratio more than double the minimum Central Bank requirement, we are well poised to continue further expansion and investment within the UAE. We are also able to deploy our capital to good use by taking advantage of favourable market conditions for reasonable and attractive growth opportunities internationally."

Noor Islamic Bank posted a net profit of Dhs511m on completing its first year of operations. Total assets reached Dhs21.8bn and total deposits touched Dhs12.4bn for the year ended 31 December, 2008.

Launched in January 2008, Noor Islamic Bank has earned a solid reputation for performance, premium service and customer care. As one of its core priorities, it has augmented its electronic banking network to cover more than 84 ATMs and 16 locations across the UAE.

In addition, the Bank also provides round-the-clock accessibility and convenience to its clients through a 24x7 branch, self service facilities of Internet banking, phone banking, SMS, as well as electronic cash and cheque deposit services.