DIB profits leap 30 per cent in third quarter to AED 710 million

The bank's assets at the end of September 2004, rose to AED 28.1 billion, a 24 per cent increase compared to the equivalent period last year, when assets totaled AED 22.6 billion.

Profit, including provisions and depositors' profits, AED733 million, representing a 47 per cent increase against AED 500 million for the same period of the previous year. Total revenues for the period AED952 million, up from AED677 million, registering a 40 per cent increase on the same period in 2003.

Customer deposits continued its strong growth, rising 22 per cent to AED24.4 billion at the end of this year's third quarter, against AED19.9 billion at the end of September 2003. For the same period, the value of the bank's investment and financing portfolio rose by 30 per cent, to AED15.4 billion from AED11.8 billion in the corresponding period of the previous year.

Dr Mohammed Khalfan bin Kharbash, UAE Minister of State for Finance and Industry and DIB's Chairman, said: "The continuing buoyant growth in the bank's profits and assets, and the size and diversity of its operations represents the strengths of its business. The bank's clearly defined strategy of broadening its appeal to customers and corporate clients has clearly paid off and the resulted in positive effect can be seen on its profits and performance to date."

The Chairman said that DIB had consolidated its position as a global leader in the Islamic finance sector and would continue to rise to greater heights by implementing innovative and effective Islamic banking strategies within all levels of the organisation.

He added that DIB's reputation had also received a significant boost by the award of the mandate to lead manage the record US$750 million Sukuk issue for the Government of Dubai, Department of Civil Aviation. The Sukuk saw the bank partner with global and regional financial institutions such as Citigroup, HSBC, Standard Chartered, Kuwait Finance House, and Gulf International Bank.

The bank's appointment by Nakheel as lead manager and arranger for a $350 million Ijara syndication - one of the largest syndication deals in the UAE - is ample evidence that DIB is being recognised as a provider of innovative and creative Islamic banking solutions in large scale transactions and operations.

"Significant growth in the bank's investment portfolio, which reached 30 per cent, is a strong indication of its ability to develop new investment channels and effectively manage the rapid growth in deposits," said Dr Kharbash. "It is also indicative of the bank's drive to diversify its income and build its business in regional markets to maximize opportunities for shareholders and depositors. In addition this growth reflects our commitment to our customers, who we consider our partners in our business transactions," he added.

Dr Kharbash asserted that DIB had participated in financing a range of innovative and productive corporate projects both locally and regionally through Ijara financing. The projects spanned several sectors including communication, energy, electricity, airlines, transportation, and real estate. The bank had also entered into new strategic alliances and partnerships with major local and international financial institutions.