World Economy

DIB Makes $1b Profit

DIB Makes $1b ProfitDIB Makes $1b Profit

Dubai Islamic Bank has joined the billion dollar profit club by declaring a net profit of Dh3.84 billion ($1.04 billion) for 2015 and its chief executive said the bank will look into untapped opportunities both regionally as well as internationally in 2016.

The bank’s 2015 net profit jumped by 37% compared to Dh2.8 billion it declared for 2014. Its net revenue increased to Dh6.49 billion, up 19% compared with Dh5.43 billion for the year 2014 primarily on the back of strong growth in core business, Arabian Business reported.

Total income increased by 21% to Dh7.55 billion compared with Dh6.23 billion for the year 2014. The increase is due to consistent growth in core businesses across all segments.

The bank’s net impairment losses declined to Dh410 million for the full year 2015 compared with Dh703 million in 2014. It’s a clear sign of quality underwriting and robust risk management practices.

DIB has accounted for substantial general provision during the year in line with its growth in financing book and in accordance with Central Bank of UAE requirements.

The bank’s impairment losses declined to Dh410 million, down 42% compared with Dh703 million for the year 2014.

Dubai Islamic Bank chairman Mohammed Ibrahim Al Shaibani said: “2015 has once again been a remarkable year for DIB with significant growth seen across all the key businesses.

Despite very challenging times in the global markets, the UAE economy still grew by about 3%.”

The global Islamic finance has seen a surge over the past 5 years now reaching to $2 trillion in assets with the UAE being one of the fastest growing markets.

Customer deposits for the year ended December 31, 2015 increased by 19% to Dh110 billion from Dh92.3 billion as of end of 2014.

Capital adequacy ratio stands at 15.7% for the year ended 2015, and T1 ratio at 15.5%, depicting strong capitalization with both ratios being well above regulatory level.