DIB profits exceed one billion Dirhams for 2004

Its net profit attributable to shareholders reported a record growth of 97 per cent to reach AED 461 million compared to AED 234 million in 2003.

The bank's assets rose by 35 per cent from AED 22.8 billion in 2003 to AED 30.8 billion in 2004 as a result of the significant growth in the bank's financing and investment portfolio, which reported a 44 per cent rise to AED 18 billion compared to AED 12.5 billion in 2003.

Meanwhile, customer deposits recorded a high growth of 26 per cent to reach AED 25 billion compared to AED 19.9 billion in 2003. The net profit for the bank, including depositors' profits, reported a 36 per cent increase for the year ending December 2004 at AED 1.02 billion compared to AED 751 million for 2003. As a result, the total shareholder's equity, including the proposed dividend to shareholders, increased by 76 per cent to reach AED 3 billion at the end of December 2004 compared to AED 1.7 billion at the end of 2003.

The results were announced following a meeting of the Board of Directors held yesterday to be approved by the Central Bank and the Annual General Meeting that will be held soon. The Board of Directors also recommended a 20 per cent cash dividend for shareholders.

Elaborating on the success stories and the excellent results of 2004, HE Dr. Mohammed Khalfan Bin Kharbash, Minister of State for Finance and Industry and Chairman of DIB, said: "The loyalty and effort of all employees at Dib contributed to making 2004 a remarkable year in the history of the bank. Our outstanding financial results and excellent achievements in various fields have combined to ensure that this will be a critical turning point in the bank's progress."

"Last year we have succeeded in achieving some record breaking transactions and deals both in terms of size and because of their pioneering nature in the Islamic finance industry. These deals have enabled DIB to consolidate its position as a world leader in Islamic finance, and revealed the bank's ability to create and structure innovative transactions that satisfy the increasing needs and requirements of industry on both local and regional levels," he said.

HE Dr. Kharbash described a number of major operations conducted by the bank such as lead managing the largest ever US$1billion Sukuk Al Ijara for the Dubai Civil Aviation and arranging the record US$350 million Ijara syndication for Nakheel as the crown jewels of DIB's achievements in 2004. He also highlighted the international recognition from the prestigious Euromoney magazine, which ranked DIB as the world's top Islamic deals lead manager.

HE Dr. Kharbash added: "In our effort to take DIB's journey to diversify its financial operations to the next level, we are taking a leading role in financing infrastructure projects and contributing to the business development within the UAE and the region. To this end, we have begun to provide credit facilities to major local and regional contracting and construction companies in 2004."

HE Dr. Kharbash lauded the tremendous effort of the executive management and employees in executing the bank's strategy of diversifying and developing all financing and investment operations, while entering new fields that enhance the returns and assets of the bank. He emphasised that the record growth in the bank's profits and assets in 2004 was clear evidence of the result of these efforts. He also stressed on increasing DIB's levels of service orientation and developing distribution channels to provide the best in class banking experience to customers.

HE Dr. Kharbash pointed out that the record growth of investment and financing portfolios, which reached 43 per cent in 2004, is a strong indicator of the development by DIB of innovative investment and financial tools that will enhance the depositors' profits in 2005.

"DIB needs to focus on entering new regional markets through opening branches or representative offices and entering in to strategic alliances and partnership with leading local and international institutions in 2005 in order to capitalise on the remarkable success achieved last year," he said.

Dr. Kharbash stressed that Emiratisation and investment in national human capital is top priority at the bank in order to enhance its efficiency further. He added: "Within the UAE, we are rated as the Employer of Choice not only amongst the UAE national workers but also in the industry. With 40 per cent of our workforce now UAE national, we have one of the highest percentages of Emiratisation in the industry."

Dr. Kharbash concluded by thanking corporate and individual clients and assuring them that the bank would strive to exceed expectations by constantly providing the finest services that satisfy evolving customer needs.

In addition to the brilliant financial results, DIB also won a clutch of industry awards and recognition in 2004. It won the JP Morgan Chase Bank's Quality Recognition Award for the outstanding quality of its funds transfer operations. It was accorded top recognition as an institution leading the region's Islamic finance industry forward through innovation at The GCC Banking Awards 2004 organized by Banker Middle East Magazine. Euromoney Institutional Investors IFW magazine awarded DIB with two prestigious awards for the best overall Islamic Retail Bank and the Best Islamic Bank for Women.