Dubai Islamic Bank's net profit grows 71% to AED305 million in first quarter

The bank's total revenue witnessed a record growth of 63% reaching AED412 million in the first quarter of 2005 as compared to AED253 million in the same period of 2004. DIB's total assets also grew 21 per cent to AED 30.5 billion in the period, from AED 25.3 billion for the first three months of 2004.

Dr Mohamed Khalfan bin Khirbash, the UAE Minister of State for Finance and Industry and Chairman of DIB, said: "The bank's impressive performance during the first three months of this year reflects the success of our strategy to diversify its wholly Islamic finance products and services range to meet the growing demands of the market. The performance also reflects the success of our ambitious initiatives to work in new markets and sectors with the support of our strategic alliances and partners."

The strength of the performance was uniform throughout the bank's operations and this was reflected in its balance sheet. DIB's investment and financing activities also reported vigorous growth of 32 per cent to AED 17.8 billion, against AED 13.5 billion for the same period last year. Customer deposits also showed strong growth in the quarter, climbing 16 per cent an increase of AED 3.6 billion to AED 26.3 billion, from AED 22.7 billion for the first three months of 2004.

The buoyancy of the financial performance figures reflected a surge in activity at DIB. This included a series of large, prestigious, and high profile deals, such as the huge commitment to solely underwrite the AED 3.59 billion credit facilities for the joint venture to complete the second phase of Dubai International Airport.

DIB was also appointed the Mandated Lead Arranger for an innovative, gold related, Islamic Sukuk, announced by the Dubai Metals & Commodities Centre (DMCC). The issue has been assigned an A rating by Standard & Poor's Rating Services.

On the regional front, the bank has been mandated to co-manage the $530 million Islamic finance tranche for Qatar Gas II. DIB had also co-managed Pakistan's US$600 million first Sovereign Islamic bond issue. There was a tremendous response to the issue from investors and it helped to consolidate DIB's status as the region's Islamic sukuk powerhouse.

The bank's determination to capitalise on the rapidly expanding global interest in Islamic finance saw it take the first steps towards establishing an international network of offices in the early months of this year. DIB announced its plan to set up a branch network operation to cover various areas in Pakistan through DIB Pakistan Limited, a wholly owned subsidiary of DIB. This was followed by the launch of the bank's first representative office in Turkey to improve its access to that booming market.

DIB's glowing first-quarter performance was supported by human resources policies that won official recognition from the Dubai Department for Economic Development (DED). The bank also won the top Human Resources Development Award in banking at the Sharjah Seventh National Careers Exhibition held in March.

Dr. Khirbash said: "As a result of the bank's policy of aiming to attract talented UAE nationals, it has succeeded in raising the level of Emiratisation to 40 per cent of its total work force which is considered to be one of the highest in the UAE in the category of large banks."