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DIB Net Profit reaches AED 3.301 billion as balance sheet crosses AED 200 billion
Group net profits up by 10% YoY to reach to AED 3.301 billion
Financing assets grew by 14% YTD to AED 131.3 billion
Deposits increased by 17% YTD to AED 143.5 billion
Dubai: 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 results for the period ended September 30, 2017.
9M 2017 Results Highlights:
Sustained profitability and growth on the back of robust Net Income Margin (NIMs) and low operating expenses
Group Net Profit increased to AED 3,301 million, up 10% compared with AED 3,011 million for the same period in 2016.
Total income increased to AED 7,510 million, up 17% compared with AED 6,410 million for the same period in 2016.
Net Operating Revenue increased to AED 5,681 million, up 13% compared with AED 5,048 million for the same period in 2016.
Efficient and proactive cost management led to operating expenses remaining nearly flat at AED 1,741 million compared to AED 1,716 million for the same period in 2016.
Net operating income before impairment charges grew by 18% to AED 3,940 million compared to AED 3,332 million for the same period in 2016.
Cost of credit risk reduced to 63 bps compared to 81 bps for the same period in 2016.
Cost to income ratio reduced to 30.7% compared with 34.0% at the end of 2016.
Asset growth remains robust across all core businesses
Net financing assets rose to AED 131.3 billion, up by 14%, compared to AED 115.0 billion at the end of 2016.
Sukuk investments increased to AED 25.2 billion, a growth of 8%, compared to AED 23.4 billion at the end of 2016.
Total Assets stood at AED 201.2 billion, an increase of 15%, compared to AED 175.0 billion at the end of 2016.
Asset quality trends remain positive, a direct consequence of robust underwriting and solid risk management practices
NPA ratio continues its downward trajectory improving to 3.4%, compared to 3.9% at the end of 2016.
Provision coverage ratio improved to 121%, compared to 117% at the end of 2016.
Overall coverage including collateral at discounted value now stands at 162%, compared to 158% at the end of 2016.
Strong liquidity continues to support asset growth
Customer deposits stood at AED 143.5 billion compared to AED 122.4 billion at the end of 2016, up by 17%.
CASA deposits increased by nearly 7% to AED 50.9 billion from AED 47.4 billion as at end of 2016 leading to a robust 35% constitution of the total deposit base.
Financing to deposit ratio stood at 92%, indicating a push towards efficiency and margin protection.
Focus on diversification and securing long term funding saw another successful senior sukuk issuance of USD 1 billion during Q1 2017.
Robust Capitalization
Capital adequacy ratio remained strong at 16.9%, as against 12% minimum required.
Tier 1 CAR stood at 16.3% under Basel II, against minimum requirement of 8%.
Shareholders’ return remains robust – in line with guidance for the year
Earnings per share stood at AED 0.55 as at Q3 2017.
Return on equity stood at 18.6% as at Q3 2017.
Return on assets steady at 2.34% as at Q3 2017.
Management’s comments on the financial performance for period ended September 30, 2017
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 recovery of international oil prices and the stability witnessed in the recent past will be a major source of support in the area of funding and liquidity for the banking sector.
With the solidity and resilience displayed by UAE’s financial market, credit growth is expected to more than double to 5% in 2018, spurred by the government’s unabated progress on infrastructure development in line with its economic aspirations.
DIB continues to remain at the forefront of the industry with solid earnings growth as net profit increased by 10% YoY, primarily driven by the bank’s persistent efforts in maximizing its share of wallet across a diverse array of sectors and segments.
Dubai Islamic Bank Managing Director, Abdulla Al Hamli, said:
The bank has given another remarkable performance this quarter with total income growing by 17% YoY as DIB continues to outpace the sector growth.
The progress we have made in implementing our growth aspirations has led to the bank strengthening its market share with both the financing book and the deposit base growing by mid to high double digits in the first nine months of 2017.
With the rapidly changing digital space, we will continue to expand on our technological capabilities to ensure that we remain at the forefront of the FINTECH revolution, and our customers get the best and most convenient product and services at all times.
Dubai Islamic Bank Group Chief Executive Officer, Dr. Adnan Chilwan, said:
Crossing the landmark of AED 200 bln in total assets is another momentous milestone in our incredible growth journey over the last four years. This market beating performance clearly demonstrates the strength of the franchise and the potential the organization has to continue to defy the trend despite the challenges thrown by the global economic environment.
The recent move by the rating agencies with positive impacts on long term as well as standalone ratings is a clear affirmation of the fact that the 14% growth in the financing assets so far this year and the tremendous performance in preceding years has not come at the expense of asset quality or underwriting standards. A testament to the tight and stringent risk management practices in DIB, these announcements by the two international rating agencies should provide a strong sense of comfort to our growing global investor community.
With a sector share of around 8%, DIB today, has the required scale, positioning and the financial strength to continue to deliver above-market performance.
Bolstering the international presence will see us engage actively in the existing core markets as we expand our focus geographies to now include South East Asia, East Africa and Far East Asia.
The progress so far has been backed by a thorough and solid strategic agenda built on a model of preemptive capacity creation. With ample liquidity and robust capitalization serving as the backbone to DIB’s growth objectives, the bank is in a strong position to accelerate its plans to expand its franchise locally and internationally and ensure that we continue to deliver even more comprehensive, creative and complete solutions to all our customers in the markets we operate.
© Press Release 2017
