Dubai Islamic Bank announces first half 2012 net profit of Dhs555m
- United Arab Emirates: Tuesday, July 31 - 2012 at 16:38
- PRESS RELEASE
Demonstrating continued strong growth, Dubai Islamic Bank (DIB) announced its financial results for the first half of the year ending June 30, 2012.
Net revenue for the first half of 2012 increased to Dhs1,826m from Dhs1,801m in the same period of 2011, an increase of 1.4%. For the three months ending June 30, 2012, DIB reported net revenue of Dhs923m, compared to Dhs903m in the first quarter in 2012, an increase of 2%.
As of June 30, 2012, the bank's total assets stood at Dhs93.9bn, compared to Dhs90.6bn at the end of 2011, an increase of 4%. As of June 30, 2012, customer deposits stood at Dhs68.3bn, compared to Dhs64.8bn as of December 31, 2011, an increase of 5%.
For the six months ending June 30, 2012, net funded income reached Dhs1,312m, compared with Dhs1,282m for the first half of 2011, an increase of 2%. Net funded income for the second quarter of 2012 remained consistent at Dhs659m, comparing with Dhs653m for the first quarter of 2012.
As of June 30, 2012, DIB maintained a healthy financing-to-deposit ratio of 78% and robust capital adequacy ratio of 18.4%.
The first half of 2012 also witnessed DIB continue its conservative approach to provisioning with Dhs539m set aside for impairments, compared with Dhs500m in the first half of 2011, further improving the bank's provision coverage ratio. For the second quarter of 2012, DIB set aside Dhs241m for impairments, compared to Dhs299m in the first quarter of the year.
The bank also further diversified its funding base in May when it successfully returned to the International Capital Markets with the issue of a US$ 500m 5 year Sukuk.
"DIB has been able to achieve sustained profitability while continuing to strengthen its balance sheet," said His Excellency Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler's Court of Dubai and Chairman of Dubai Islamic Bank.
"Assisted by a prudent strategy of diversifying our funding sources, DIB remains highly liquid and superbly placed to support the financing needs of the UAE, its economy and its people. Moreover, our recent Sukuk, which was four times oversubscribed, served to underscore investor confidence in the DIB business model."
"Alongside our strong financial performance, the first half of 2012 has been notable for our continued drive to provide customers with the best possible Islamic Banking experience and products," said Abdulla Al Hamli, Chief Executive Officer of DIB.
"With four new branches opened already in 2012, our on-going expansion strategy has brought us even closer to our customers. Yet, it is through alternative banking channels where we have made the most significant advancement. The launch earlier in the year of our exceptional Al Islami Business Online service, a portal enabling companies to access over 75 services at the click of a button, embodies our commitment to being not only the UAE's, but also the region's leading Islamic bank."
The first half of 2012 witnessed a number of significant award wins for DIB, including being named the region's "Best Islamic Bank" at the Banker Middle East Industry Awards 2012; and "Best Distance Banking Service" and Best Structured Product" at the Banker Middle East Product Awards. The bank won three awards in the "Corporate Finance," "Restructuring" and "Structured Finance" Deal of the Year categories at the Islamic Finance News Awards; in addition to being named "Best Islamic Bank, UAE" by World Finance magazine. DIB was also named among the "Deals of the Year for 2012" by The Banker, a Financial Times publication, for its role as the Islamic arranger of a US$800m Wakala Syndicated Financing for Salik One.
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