Dubai Islamic Bank reports nine-month net profit of Dhs1.1bn

The bank reported a net profit of Dhs1.12bn for the first nine months of 2009, continuing the trend of positive performance in the year to date. In line with its long-term prudent and conservative approach, DIB has made impairment provisions of Dhs403m for the same period, impacting its net profitability.

The bank's total assets as of September 30, 2009, stood at Dhs82.9bn, while customer deposits reached Dhs66.1bn in the same period. This confirms that the bank is on track towards execution of its retail banking strategy, which is the key focus area for the bank in 2009 and beyond, as it increases its customer market share and asset base across the country.

The figures also reflect the continued strength and appeal of DIB during a period of sustained expansion of the bank's retail banking services and channels through its bricks-and-mortar branch network, which is targeted to reach a total of 64 nationwide branches by the end of this year. The bank has already opened six new branches in 2009.

DIB additionally continues to strengthen its retail position in the assets as well as liabilities, which are the core business for the bank. Given the population trends and high spend levels in the UAE, DIB will continue to focus on the retail banking sphere, which is a key driver for growth and significant contributor to its earnings. This matches the overall trend in the UAE banking sector, where more and more banks are realising that retail is the way forward.

At the end of the third quarter of 2009, DIB's investing and financing assets stood at Dhs50.3bn, while the bank's financing-to-deposit ratio stood at 76% as of September 30, 2009, reflecting its sensible credit approach and strong liquidity position, which has enabled DIB to expand its retail credit portfolio in line with the bank's strategy for the year. As further evidence of the bank's strong liquidity position, earlier this year, DIB bought back its sukuk amounting to $50.6m through a cash tender offer to its sukuk holders.

Despite the continued challenging conditions facing the financial services sector worldwide, DIB has maintained its focus on long-term sustainable growth and will be in an extremely strong position to benefit from the global recovery, according to His Excellency Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler's Court of Dubai and Chairman of Dubai Islamic Bank.

"The past 12 months have presented a range of unprecedented threats to the stability of the global financial system," he said, "but we are now clearly emerging from that period of instability and moving into a new phase of recovery, evidenced by the more positive growth projections worldwide.

"In that larger macroeconomic context, Dubai Islamic Bank continues to set benchmarks in terms of financial performance, customer focus and service excellence. In particular, and of special importance to domestic and regional organisations, DIB has maintained its commitment to playing a leadership role in the Islamic financing sector by providing financial solutions, products and services that help government and semi-government organisations and private-sector firms realise their own growth potential," he added.

Recently, DIB announced that it had won two accolades at the annual Asset Triple A Islamic Finance Awards. DIB was recognised in the 'Most Innovative Islamic Finance Deal' category.

On the regional front, the bank announced in the third quarter of this year that Jordan Dubai Islamic Bank (JDIB) has received a preliminary banking licence from the Central Bank of Jordan to operate as an Islamic financial institution, and that it will begin operations with a share capital of $100m. JDIB is expected to open its first branch in the first quarter of next year.