Dubai: Dubai Islamic Bank (DIB), on Wednesday reported a nine-month net profit of Dh3.3 billion, up 10 per cent compared with Dh3.billion for the same period in 2016.
The bank sustained profitability and growth on the back of robust net income margin (NIMs) and low operating expenses.DIB’s total income increased to Dh7.51 billion, up 17 per cent compared with Dh6.41 billion for the same period last year.
For the third quarter of the year, the bank made Dh1.15 billion net profits compared with a net profit of Dh1 billion in the corresponding period of 2016.
“DIB continues to remain at the forefront of the industry with solid earnings growth as net profit increased by 10 per cent year on year, primarily driven by the bank’s persistent efforts in maximising its share of wallet across a diverse array of sectors and segments,” said Mohammad Ibrahim Al Shaibani"> Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank.
The bank’s net operating revenue increased to Dh5.68 billion, up 13 per cent compared with Dh5 billion for the same period in 2016. “DIB continues to outpace the sector growth. Our growth aspirations has led to the bank strengthening its market share with both the financing book and the deposit base growing by mid to high double digits in the first nine months of 2017,” said Abdulla Al Hamli, Dubai Islamic Bank Managing Director.
Operating expenses remained nearly flat at Dh1.74 billion compared to Dh1.71 billion for the same period in 2016. Net operating income before impairment charges grew by 18 per cent to Dh3.94 billion compared to Dh3.33 billion for the same period in 2016. Cost of credit risk reduced to 63 basis points (bps) compared to 81 bps for the same period in 2016. Cost to income ratio reduced to 30.7 per cent compared with 34 per cent at the end of 2016.
DIB’s net financing assets rose to Dh131.3 billion, up by 14 per cent, compared to Dh115 billion at the end of 2016. Sukuk investments increased to Dh25.2 billion, a growth of 8 per cent, compared to Dh23.4 billion at the end of 2016. Total assets stood at Dh201.2 billion, an increase of 15 per cent, compared to Dh175 billion at the end of 2016.
“Crossing the landmark of Dh200 billion in total assets is another momentous milestone in our incredible growth journey over the last four years. This performance clearly demonstrates the strength of the franchise and the potential the organisation has to continue to defy the trend despite the challenges thrown by the global economic environment,” said Dr Adnan Chilwan, Dubai Islamic Bank’s Group Chief Executive Officer.
Customer deposits stood at Dh143.5 billion compared to Dh122.4 billion at the end of 2016, up by 17 per cent. CASA [current and savings account] deposits increased by nearly 7 per cent to Dh50.9 billion from Dh47.4 billion as at end of 2016, leading to a robust 35 per cent constitution of the total deposit base.
On the asset quality front, the banks’ non-performing assets (NPA) ratio continues its downward trajectory improving to 3.4 per cent, compared to 3.9 per cent at the end of 2016. Provision coverage ratio improved to 121 per cent, compared to 117 per cent at the end of 2016.
Financing to deposit ratio stood at 92 per cent, indicating a push towards efficiency and margin protection. Capital adequacy ratio (CAR) remained strong at 16.9 per cent, as against 12 per cent minimum required.