Q1 2015 net profit up by 34 per cent to AED 850 million

Dubai, April 15, 2015

Dubai Islamic Bank (DFM: DIB), the first Islamic bank in the world and the largest Islamic bank in the UAE by total assets, today announced its 1st quarter results for the period ended March 31, 2015.

1Q 2015 Results Highlights: 

Robust profitability growth:

  • Group Net Profit increased to AED 850 million, up 34% compared with AED 637 million for the same period in 2014.

  • Total Income increased to AED 1,772 million, up 19% compared with AED 1,495 million for the same period in 2014.

  • Net Operating Revenue increased to AED 1,563 million, up 20% compared with AED 1,305 million for the same period in 2014.

  • Impairment losses declined to AED 136 million compared with AED 195 million for the same period in 2014.

Strong growth in earning assets across all business segments:

  • Net financing assets at AED 82 billion up by 11%, compared to AED 74 billion at the end of 2014.

  • Sukuk investments at AED 17.5 billion, an increase of 9%, compared to AED 16.1 billion at the end of 2014.

  • Total Assets at AED 139.6 billion, an increase of 13%, compared to AED 123.8 billion at the end of 2014.

Continuous improvements in asset quality

  • NPLs on a consistent decline with NPL ratio improving to 7.0%, compared to 8.0% at the end of 2014.

  • Impaired financing ratio also improved to 5.5%, from 6.5% at the end of 2014.

  • Cash coverage ratio improved to 81%, compared to 78% at the end of 2014. Overall coverage including collateral at discounted value now at 135%.

Increasing customers' deposits

  • Customer deposits at AED 104.1 billion compared to AED 92.3 billion at the end of 2014, up by more than 13%.

  • Low cost deposits continue to remain a significant chunk with a large and stable CASA book comprising 50% of total deposit base.

Strong Capitalization and liquidity position

  • Capital adequacy ratio at 17.0%, as against 12% minimum required, following successful additional T1 issuance in January 2015.

  • Financing to deposit ratio is at 79%, one of the strongest in the market.

Enhancing value for shareholders

  • Earnings per share increased to AED 0.18 in Q1 2015 from AED 0.12 in Q1 2014.

  • Return on assets increased by 42 bps to 2.58% in Q1 2015 from 2.17% in Q1 2014.

  • Return on equity increased by 204 bps to 19.3% in Q1 2015 from 17.3% in Q1 2014.

Management's comments on the financial performance of the financial period:

His Excellency Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler's Court of Dubai and Chairman of Dubai Islamic Bank, said:

  • The strong first quarter results demonstrate the bank's strength and capability to continuously grow and expand its franchise despite the global market volatilities.

  • As the bank celebrates its 40 year anniversary in 2015, DIB is proud to have been a key pillar in the growth of this remarkable nation achieving numerous and significant milestones in its long legacy, heritage and journey. The bank will continue to be at the forefront in the national development and growth of Dubai and the whole of UAE and will also continue to lead the global Islamic banking industry into a new era of innovation and progress.

Dubai Islamic Bank Managing Director, Abdulla Al Hamli, said:

  • Our strong start to the year reflects DIB's robust positioning as the bank looks to tap new sectors and segments.

  • Our continued investments in technology and infrastructure backed by a renewed sales focus provides the bank with an unparalleled competitive edge in the market.

  • Following the success of our SMART banking campaign last year, we are now seeing a strong outcome on our business performance.

Dubai Islamic Bank Chief Executive Officer, Dr. Adnan Chilwan, said:

DIB has once again demonstrated a robust and solid performance marking a strong start to 2015. We have generated exceptionally strong organic growth for the bank and have already set plans in motion to support the same with an inorganic growth agenda looking beyond our traditional borders.

Building on the momentum of last year, and aided by the strength of our balance sheet, we continue to capture greater market share in our relentless bid to promote Islamic finance as a viable norm rather than an alternative.

Expanding our financing book at two to three times the market has been achieved through a multi-pronged approach combining product innovation, technology, renewed sales and service focus and optimization of balance sheet to create additional growth capacity.

Islamic finance assets in the UAE have crossed USD 100 bln mark with the sector now more than one-fifth of the total banking and finance business in the country. The segment is expected to grow by 2.5-3 times in the coming five years and DIB is well positioned to take advantage of and support this growth in its drive to help establish Dubai as the global capital of Islamic economy.

We reiterate our commitment to continuously strive to deliver attractive returns to our shareholders and to deliver the best in class products and services to our customers.

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© Press Release 2015