Dubai Islamic Bank profits leap 106 per cent in third quarter to AED 1.5 billion

The bank's assets at the end of September 2005, rose AED5.3 billion to AED33.4 billion, compared to AED28.1 billion at the end of September 2004.

The bank's investment and financing portfolio rose by 27 per cent, to AED19.5 billion from AED15.4 billion in the end of September 2004. Customer deposits continued its strong growth, rising AED3.3 billion to AED27.7 billion at the end of this year's third quarter, against AED24.4 billion at the end of September 2004.

Dr. Mohammed Khalfan bin Khirbash, UAE Minister of State for Finance and Industry and DIB's Chairman, said: "The bank continues to achieve strong financial results across all its business units and operations. These results reflect the success of the bank's strategy in diversifying its funding and investment activities by developing innovative products and services that meet the needs of new segments. The bank continues to enter new markets and widen its geographic coverage through a series of strategic partnerships and alliances with leading UAE and international institutions."

"The results also confirm the bank's leading position as DIB has lead managed and arranged some of the largest Islamic finance deals in the region. DIB will cross the landmark of AED30 billion for the value of deals for which the bank has been mandated to lead manage from June 2004 till end of 2005," he said.

Dr. Khirbash, added: "These significant deals contributed to enhance the position of the UAE as a financial hub, especially with the increasing role of Dubai after the launch of the Dubai International Financial Exchange (DIFX) and the increase in number of international financial institutions that are joining the Dubai International Financial Centre."

"With the continuing economic growth in the UAE and region, the markets need solid financial institutions capable of meeting the markets' requirements especially capital markets are now playing a major role in funding various projects and economic activities across the region," he noted.

Dr. Khirbash added: "The bank has focused on fulfilling these needs by developing innovative products and financial solutions, as well as advisory services. DIB's activities have helped government, semi-government and large corporations find the funding they need at a competitive cost. This has certainly contributed to the development of the financial market in the country and the region."

As for DIB's expansion in the regional and international markets, he said: "The bank continues to implement its ambitious plans to enhance its presence in the regional markets by expanding its branch operation and opening representative offices, in addition to investing in leading corporations. The bank's local and regional branch network is expected to reach 70 branches by 2007. DIB's expansion plan will greatly focus on the GCC and regional markets. "

Dr. Khirbash stressed that Emiratisation and investing in the development of UAE Nationals is at the top of the bank's priority. The bank have succeeded in attracting UAE Nationals which resulted in nationals accounting for about 45 per cent of the total number of employees hired by the bank during the first nine months of 2005. UAE Nationals now account for 40 per cent of the total work force, which is considered to be one of the highest in the UAE banking sector.