DIB announces first half 2011 net profit of AED 552 million, up 10 per cent

Dubai Islamic Bank (DIB) announced today its financial results for the first half of the year ending June 30, 2011, demonstrating continued strong growth in the bank’s core operations.

For the first half of 2011, DIB reported a net profit of AED 552 million, up 10 per cent compared with the first half of 2010. For the second quarter of 2011, the bank reported a net profit of AED 331 million, an increase of 10 per cent compared to AED 301 million in the same period of 2010. Comparing quarter-on-quarter, DIB’s net profit increased by 50 per cent in the second quarter of 2011 compared with AED 221 million in the first quarter of 2011.

The bank’s total assets as of June 30, 2011, stood at AED 102.9 billion compared to AED 90.1 billion at the end of 2010, an increase of 14 per cent. As of June 30, 2011, customer deposits stood at AED 77.6 billion compared to AED 63.4 billion as of December 31, 2010, an increase of 22 per cent.

DIB’s total revenue in the first half of 2011 was AED 1.8 billion compared to AED 1.5 billion in the same period of 2010, an increase of 20 per cent. In the second quarter of 2011, the bank’s total revenue grew by 13 per cent compared with the same period in 2010. 

DIB maintained a robust financing-to-deposit ratio of 71.3 per cent as of June 30, 2011, providing a clear indication of the bank’s strong liquidity position. The bank also reported a healthy Capital Adequacy Ratio of 17.5 per cent.

DIB continued to take a conservative and prudent approach by enhancing provisions for impairment from AED 320 million in the first half of 2010 to AED 500 million in the same period of 2011. During the second quarter of 2011, the bank raised provisions for impairment amounting to AED 210 million compared with AED 146 million in the same period in 2010.

His Excellency Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank, said: “During a period of renewed growth, Dubai Islamic Bank has continued to perform impressively. The bank’s commitment to prudently manage its core operations, through effective cost controls and risk management, has delivered a strong set of results in the second quarter of the year. From a position of strength, DIB remains committed to playing a central role in the continued economic growth and diversification of the UAE and wider region.”

The second quarter of 2011 witnessed a number of significant achievements for DIB, including the completion of the landmark Salik road toll securitisation, in which DIB played a key role as part of its long-standing commitment to support the continued economic development of Dubai. 

In May 2011, trading in the shares of Tamweel - the UAE Islamic home finance provider - resumed following DIB’s increased stake in the company. DIB, which owns 58.25 per cent of Tamweel, is the majority shareholder in the company and has provided significant liquidity and support.

Looking ahead to the second half of 2011, DIB will continue to expand its network across the UAE with eight new branches scheduled to open later in the year. These openings follow the inauguration in June of DIB’s new Al Islami Private Banking branch in Dubai.