Dubai Islamic Bank first quarter 2011 net profit surges 11 per cent to AED 222 million

Dubai Islamic Bank (DIB) announced today its positive financial results for the three months ending March 31, 2011, demonstrating the bank’s sustainable growth and strong liquidity position despite its continuing policy of prudent provisioning.

For the first quarter of 2011, DIB reported a net profit of AED 222 million, an increase of 11 per cent compared to AED 200 million in the corresponding period of 2010. This increase in net profitability marks a return to stable growth for the bank, which continues to witness a strong income contribution from its core operations.

The bank’s total assets as of March 31, 2011, stood at AED 100.4 billion, an increase of 11 per cent compared to AED 90.1 billion at the end of the previous quarter in 2010. As of March 31, 2011, customer deposits stood at AED 72.9 billion, up 15 per cent compared to AED 63.4 billion at the end of the previous quarter in 2010.

DIB reported a robust Basel II capital adequacy ratio of 17.5 per cent as of March 31, 2011.

“On behalf of Dubai Islamic Bank, I am extremely pleased to announce our strong financial performance in the first quarter of this year,” said His Excellency Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank. “These positive results – including growth in net profits, assets and customer deposits – reflect the resilience of Dubai Islamic Bank during this period of increasing domestic economic expansion.

“Through its focus on diversification and managed growth, Dubai Islamic Bank continues to expand its branch network and overall customer base,” he said, adding that DIB now operates more than 135 branches in the UAE, Pakistan and Jordan, serving nearly 1.3 million customers across the network. So far this year, Al Shaibani noted, DIB has opened two new branches, further supporting its status as the UAE’s leading Islamic bank.

“Led by a strong management team and with a clear vision for the future,” he said, “Dubai Islamic Bank will continue to provide an important contribution to the economic growth and diversification of the UAE as a whole.”

Recently, DIB was assigned an ‘A’ rating by Fitch Ratings, which, according to the international ratings agency, reflects the bank’s strong franchise, earnings power and satisfactory liquidity position.

In February, DIB was named the “Best Takaful Distributor in the UAE” for the second successive year. The 2010 award for the Al Islami Takaful Programme was presented to the bank by Germany’s FWU AG, a global leader in Takaful product development.

Finally, at the DIB Annual General Meeting in March, the assembly approved the distribution of a dividend of 10 per cent for the year 2010, reflecting the bank’s commitment to sharing its success with its shareholders.