Dubai Islamic Bank reports net profit of Dhs854m

For the first nine months of 2012, DIB reported a net profit of Dhs854m, compared to Dhs850m for the corresponding period of 2011. For the third quarter of 2012, the bank reported a net profit of Dhs298.5m, thereby maintaining its profitability over the same period last year.

The bank's total assets as of September 30, 2012, stood at Dhs93.7bn, compared to Dhs90.6bn on December 31, 2011, an increase of 3.5%. DIB's operating profit i.e net profit before impairment losses, has increased by 9.6% in the third quarter of 2012 compared with the corresponding period in 2011.

The third quarter of 2012 saw DIB continue with its conservative approach to provisioning, with Dhs309m set aside for impairments, compared to Dhs217m in the same quarter of 2011, an increase of 43%. For the first nine months of 2012, DIB made provisions of Dhs849m, compared to Dhs718m over the same period of 2011, highlighting the management's focus to continuously strengthen the balance sheet of the bank.

Growth in customer deposits, which increased by 3.3% to Dhs66.9bn as of September 30, 2012, further demonstrates the bank's healthy liquidity position that continues to be the best in the UAE banking sector with a financing to deposit ratio of around 82%. Further, the strength of the balance sheet is clearly depicted in the robust capital adequacy ratio (CAR) of 18.4% under Basel II and a Tier 1 CAR of 14.3%.

"The performance of Dubai Islamic Bank in the third quarter of 2012 was notable for delivering strong results while continuing with its conservative approach to provisioning, as demonstrated by increases in key balance sheet ratios," said His Excellency Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler's Court of Dubai and Chairman of Dubai Islamic Bank.

"This prudent business strategy positions the bank well to benefit from positive economic conditions in the UAE."

Abdulla Al Hamli, Chief Executive Officer, Dubai Islamic Bank, said: "Alongside actively enhancing the efficiency of our operations, the focus for DIB over the past quarter has been the introduction of innovative products to the market, such as our Shaatir children's savings account. Thanks to our stable, well-diversified funding base and innovative product mix, DIB remains uniquely placed to serve the financing needs of individuals and businesses across the UAE."

The third quarter of 2012 witnessed the launch of the Shaatir savings account, DIB's first account developed specifically for children. The account is designed to help young people understand financial responsibility from an early age, and includes a number of innovative features that encourage children to save towards specific goals in their lives.

The period also saw a number of significant initiatives in support of DIB's ambitious Emiratisation targets, including the launch of the annual Iktaseb summer training programme, offering professional training opportunities to 105 young UAE nationals aspiring to careers in Islamic banking and finance. DIB also welcomed 20 female UAE nationals each from Dubai and Abu Dhabi to the latest edition of its six-month long Emarati Programme, a customised training course to enhance their skills and knowledge of the banking industry.