DIB's 9-month profit up 12% on higher Islamic financing income

The bank posted net profit of Dh1.26 billion for Q3 of 2018 compared to Dh1.16 billion for the same period last year

Dubai, United Arab Emirates, October 11, 2018

Dubai Islamic Bank (DIB) net profits for first 9 months of 2018 grew 12.1 per cent to Dh3.7 billion from Dh3.3 billion for the same period last year, thanks to higher income from Islamic financing.

The bank's posted net profit of Dh1.26 billion for the third quarter of 2018 as compared to Dh1.16 billion for the same period last year, an increase of 8.6 per cent.

Total income for the 9 months of 2018 was Dh8.53 billion, reflecting 13.6 per cent year-on-year increase, mainly driven by growth in income from Islamic financing that grew by 20.5 per cent to reach Dh6.9 billion from Dh5.72 billion for the same period in 2017.

Net revenue for 9 months ended September 30, 2018 amounted to Dh6.05 billion, an increase of 6.6 per cent compared with Dh5.68 billion in the same period of 2017. Commissions and fees increased by 8.3 per cent during the nine months of 2018 reaching to Dh1.11 billion.

While operating expenses remained stable at Dh1.75 billion compared to Dh1.74 billion in the same period in 2017. As a result, cost to income ratio significantly improved to 29.0 per cent compared to 30.4 per cent in December 2017.

Mohammed Ibrahim Al Shaibani, chairman, Dubai Islamic Bank, said the UAE is on track to sustaining its growth following recovery in global oil prices, new reforms and government stimulus which includes initiatives in boosting the private sector to diversify sources of growth. Abdulla Al Hamli, managing director, Dubai Islamic Bank, said with a market cap of over Dh35 billion, the bank today is amongst the fastest growing franchise in the region. Its on-going investments in technology will provide the necessary infrastructure and platforms allowing the bank to sustain its growth in the coming years.

Dr Adnan Chilwan, group CEO, Dubai Islamic Bank, said the bank has constantly shown the ability to rapidly respond to changes in the economic environment leading to strong growth in profitability of 12 per cent YoY crossing the $1 billion profit in the nine months of the year, a first in the bank's history.

'With two credit rating reaffirmations during the quarter, the bank's financial position remains solid with significant improvements in asset quality, liquidity and profitability. Optimal management of costs has further improved the cost income ratio to 29 per cent, which is an incredibly efficient position for a large retail franchise based out of Dubai,' he said.

The bank said its net financing assets to customers increased to Dh142.6 billion as of September 30, 2018 from Dh133.3 billion at the end of 2017, an increase of 7 per cent as the bank continues on its strong growth agenda.

khaleejtimes