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DIB reports net profit of AED854m for the first 9 months

Published: 05/11/2012 05:26:36 PM GMT
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Sunday, Nov 04, 2012Dubai: Dubai Islamic Bank ( DIB ) on Sunday posted a net profit of Dh854 million for the first nine months of (more)

Sunday, Nov 04, 2012

Dubai: Dubai Islamic Bank ( DIB ) on Sunday posted a net profit of Dh854 million for the first nine months of 2012 compared to Dh850 million for the corresponding period in 2011.

For the third quarter of 2012, the bank reported a net profit of Dh298.5 million, maintaining its profitability over the same period last year.

The bank’s total assets as of September 30, 2012, stood at Dh93.7 billion, compared to Dh90.6 billion on December 31, 2011, an increase of 3.5 per cent. DIB’s operating profit (net profit before impairment losses) has increased by 9.6 per cent 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, The bank set aside Dh309 million for impairments in the third quarter 2012, compared to Dh217 million in the same quarter of 2011, an increase of 43 per cent. For the first nine months of 2012, DIB made provisions of Dh849 million, compared to Dh718 million over the same period of 2011.

DIB’s customer deposits increased by 3.3 per cent to Dh66.9 billion as of September 30, 2012 with a financing to deposit ratio of around 82 per cent. The bank’s balance sheet continued to remain strong with robust capital adequacy ratio (CAR) of 18.4 per cent under Basel II and a Tier 1 CAR of 14.3 per cent.

Conservative approach

“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,” saidy Mohammad Ebrahim 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.”

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 life.

“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,” said Abdullah Al Hamli, Chief Executive Officer, Dubai Islamic Bank

Staff Report

Gulf News 2012. All rights reserved.

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