DUBAI / WAM
Dubai Islamic Bank (DIB) has announced the distribution of a 45% cash dividend for 2015, a 12.5% increase from the previous year, following the conclusion of its Annual General Meeting (AGM).
The assembly approved the bankâ€™s 2015 financial statements. For the 12 months ended December 31, 2015, DIB reported a net profit of AED3.83 billion, a significant increase of 37 percent compared to AED2.80 billion in 2014. The assembly also reviewed the Fatwa and Sharia Supervisory Board Report, and reappointed KPMG as the bankâ€™s external auditors.
In addition, the AGM ratified DIBâ€™s capital increase by way of rights issue of 988,437,777 million new shares to raise the paid-up capital from AED 3,953,751,107 to a maximum of AED 4,942,188,884. The rights will be offered either once or through a series of issuances after obtaining the required approval from relevant regulatory authorities.
Furthermore, authorisation was obtained on increasing the ceiling of non-convertible Sharia-compliant hybrid tier 1 capital instruments by US$ 750 million for the purpose of strengthening the bankâ€™s capital. This additional increase will take the total tier 1 capital from US$ 2.0 billion to US$ 2.75 billion.
Commenting on the announcement, Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Rulerâ€™s Court of Dubai and Chairman of Dubai Islamic Bank, said, “2015 was a special year for DIB where the bank celebrated its 40th anniversary whilst also recording the highest ever profit number in its history. On behalf of the board, we are very pleased to distribute 45% cash dividend to our shareholders for 2015 which is a 12.5% increase from the previous year. We would like to thank all our shareholders for their loyalty and confidence as we reiterate our commitment to support Dubaiâ€™s efforts to become the global capital of the Islamic economy.”
Dr. Adnan Chilwan, Group CEO, DIB, said, “Dubai Islamic Bank has delivered another remarkable performance in 2015 as the bank joined the â€˜Billion Dollar Profit Clubâ€™. Our focus on growing core business and abstaining from non-core activities resulted in a market leading performance despite the macro-economic environment and volatile and challenging conditions. Today, we have a solid platform that progressively creates growth opportunities both within and outside the organisation. Going into 2016, our focus remains unchanged with core businesses of consumer and wholesale being the main drivers of growth. As the franchise continues to progress steadily in pushing the Islamic finance agenda and gaining market share, I am confident that DIB will be able maintain its strong performance and undisputed leadership in the industry in the years to come.”