Dubai Islamic Bank posts 13% growth in profits to AED 2.7 billion
DUBAI: Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE, has announced 13% YoY growth in net profit to AED 2.7 billion for the half year ended June 30, 2019.
Dubai Islamic Bank Group Chief Executive Officer, Dr. Adnan Chilwan, said: “We have built a dynamic, flexible and adaptive organization that can sustain business and growth in any kind of economic environment. Whilst we continue to show robust balance sheet growth, profitability is and will always remain the key area of focus for DIB, evidenced by ROA at 2.46% and ROE at 18.5%, which is amongst the strongest in the market”.
Total income for the period ended 30 June 2019 reached AED 6.982 billion, up 25% YoY. The strong income growth can be attributed to robust growth in income from Islamic financing and investing assets growing at 19% as well as income from investments in Islamic sukuk which grew at 33%.
Dubai Islamic Bank’s net revenue for the period ended 30 June 2019 amounted to AED 4.699 billion, an increase of 16% compared with AED 4.036 billion in H1 2018. The bank’s continued efforts to diversify into key sectors of the domestic economy have supported the continued core revenue growth over the past few years.
Net profit grew strongly by 13% to AED 2.753 billion for the period ended 30 June 2019 from AED 2.441 billion in H1 2018. Strong income growth from the bank’s key businesses coupled with a well-disciplined cost management have supported the robust growth in net profit for the period.
Net financing and sukuk investments increased to AED 182.5 billion for the period ended 30 June 2019 from AED 175.9 billion at the end of 2018, an increase of over 3.7%, primarily driven by continued healthy core business growth and focus on diversification throughout the past few years.
Corporate banking financing assets currently stand at AED 106 billion whilst the consumer financing assets stood at AED 40 billion, the latter supported by new financing of around AED 7.0 billion. Commercial real estate concentration managed within guidance at around 20%.
Dubai Islamic Bank Managing Director, Abdulla Al Hamli, said: “We continue to sustain the growth of our balance sheet evidenced by the consistent increasing market share of DIB in the industry over the past few years. The progress on digital ambitions continues with the launch of significantly enhanced products and services to the modern customer leading to a more personalized and secured banking journey that can be experienced anytime and anywhere”.