Dubai Islamic Bank profit hits AED2.14bn

Dubai / Emirates Business

Dubai Islamic Bank (DFM: DIB), the first Islamic bank in the world and the largest Islamic bank in the UAE by total assets, announced its first half results for the period ended June 30, 2017.
The group net profit increased to AED 2,143 million (AED 2.14bn), up 7% compared with AED 2,004 million for the same period in 2016. Total income increased to AED 4,865 million, up 15% compared with AED 4,235 million for the same period in 2016. Net operating revenue increased to AED 3,676 million, up 10% compared with AED 3,356 million for the same period in 2016. Efficient and proactive cost management led to operating expenses remaining nearly flat at AED 1,162 million compared to AED 1,151 million for the same period in 2016.
His Excellency Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank, said: “The UAE retains its strong economic fundamentals following an upgrade in its credit outlook to “Stable” during the quarter from Moody’s. The non-oil economy, which is expected to grow above 3% this year, will be a key driver towards the economic growth of the UAE in the coming years.” “DIB continues to show remarkable progress with total income now reaching nearly AED 5 billion, a significant increase of 15% compared to the same period last year. Our international expansion is on track as the bank officially received its license in April from the Central Bank of Kenya to start our operations. This paves the way for the bank’s aspirations in Africa and proliferation of Islamic finance across Asia, Middle East and the East African Belt,” he added.
The gross cost of credit risk reduced to 55 bps compared to 75 bps for the same period in 2016. Cost to income ratio declined to 31.6% compared with 34.0% at the end of 2016. Net financing assets rose to AED 125.4 billion up by 9%, compared to AED 114.9 billion at the end of 2016. Sukuk investments increased to AED 26.4 billion, a growth of 13%, compared to AED 23.4 billion at the end of 2016.
The ttal assets stood at AED 193.1 billion, an increase of 10%, compared to AED 174.9 billion at the end of 2016, whereas NPA ratio continues its downward trajectory improving to 3.6%, compared to 3.9% at the end of 2016. Provision coverage ratio improved to 120%, compared to 117% at the end of 2016. Overall coverage including collateral at discounted value now stands at 161%, compared to 158% at the end of 2016. Dubai Islamic Bank Group Chief Executive Officer, Dr. Adnan Chilwan, said: “DIB continues to demonstrate robust earnings on the back of strong and unyielding focus on key economic growth sectors in the markets and jurisdictions we operate.”

Emirates Islamic Bank posts AED387mn gains
Dubai / WAM

The Emirates Islamic Bank has announced its H1 2017 financial results, declaring a net profit of AED387 million.
Attributing the positive results to an improved overall performance and increased customer deposits, Hesham Abdulla Al Qassim, Chairman of Emirates Islamic, said the bank has “consistently invested in innovation and infrastructure, the results of which are now evident in our positive numbers. Shari’a-compliant banking continues to set new milestones in the overall banking sector, and Emirates Islamic aims to contribute substantially to the sector’s growth and the government’s goal of making Dubai the global capital of
Islamic economy.”
Jamal Bin Ghalaita, Chief Executive Officer of Emirates Islamic added: “At Emirates Islamic, we
continue to move forward with our strategy of profitable growth combined with effective cost management. Over the years, we have stood out from the competition through our focus on strategic pricing, product innovation and customer service.”