· The bank holds nearly 40% stake in the newly rebranded entity
· Launch marks DIB's first entry into Asia-Pacific
· 95% of Indonesian population is Muslim - acquisition eyes strong growth potential
Dubai, UAE - Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE, has celebrated the launch of Panin Dubai Syariah Bank in Indonesia, in the presence of DIB Group CEO Dr. Adnan Chilwan, key local officials including Mr. Muliaman D. Hadad, Chief Commissioner OJK, Dr. KH Ma’ruf Amin, Chief of the Indonesia Ulama Council, Mr. Hamlim Alamsyah, Chief Commissioner of Indonesia Deposit Insurance Corporation and senior management from both organizations.
Following regulatory approvals in 2015, Dubai Islamic Bank successfully acquired almost 40% in PT Bank Panin Syariah Tbk, which has been rebranded to Panin Dubai Syariah Bank (PDSB) as part of the deal, marking DIB’s first entry into the Asia-Pacific region.
The newly rebranded bank offers Islamic banking services in Indonesia. With a total population of 200 million people, 95% of which are Muslim, and its Sharia compliant banking market expected to grow from 3% to 11% by 2020, Islamic finance will be a defining pillar of Indonesia’s growth in the years ahead.
Commenting on the acquisition and launch, Dr Adnan Chilwan, Group CEO of DIB, said: “This acquisition is an important milestone for DIB. As the world’s first fully-fledged Islamic bank, we not only established a new banking model four decades ago, but also took on the responsibility to grow and develop the global Islamic finance market. One way we are doing this is through strategic partnerships and Bank Panin is a perfect partner for us in the Asia-Pacific region. As an established player with years of experience and local market knowledge, Bank Panin will enable us to progress our vision for Islamic finance in Indonesia and across the region. Looking ahead, we will execute our strategy in Panin Dubai Syariah Bank just as we have consistently done over the past forty years in the UAE and in our other key international markets, and are confident that this partnership will ultimately get us one step closer to making Sharia compliant banking the norm, rather than an alternative to conventional banking, around the world.”
DIB has experience of doing business in Indonesia on key Sharia compliant transactions including the 2015 Garuda Airlines’ structuring for its US$500 million five year sukuk offering. This sukuk issuance was a significant milestone for the development of Islamic finance capital markets and re-enforced investor confidence in the Indonesian market. DIB’s activities in Indonesia have also been further witnessed by its substantial investment in Gol and its entities, with over US$500 million on its proprietary book held to maturity.
True to its reputation as the leading performer in the UAE market over the years, in 2016, DIB reported a net profit of AED 4,050 billion, a significant increase of 6% per cent compared to AED 3.83 billion in 2015. It was DIB’s highest ever profit, depicting robust profitability growth despite a challenging economic environment. Following a revised strategy in 2016, the bank’s Pakistan operations, saw its profits double, the focus now is to get Indonesia and Kenya launched to play their part in contributing to the progression of Islamic finance, a core ambition for the bank.
The Bank was also honored for three international transactions over the past year: the “Indonesia Deal of the Year” for the second year in a row for the Perusahaan Penerbit SBSN Indonesia Senior Unsecured Wakalah Fixed Rate Trust Certificates, the “Pakistan Deal of the Year” for its work on the Power Holding PKR25 billion Syndicated Long Term Islamic Finance Facility, and the “Kuwait Deal of the Year” for the Boubyan Tier 1 US$250 million Sukuk.
-Ends-
About Dubai Islamic Bank:
Established in 1975, Dubai Islamic Bank is the largest Islamic bank in the UAE by assets and a public joint stock company listed on the Dubai Financial Market. Spearheading the evolution of the global Islamic finance industry, DIB is also the world’s first full service Islamic bank and the fourth largest Islamic bank in the world. The Bank currently operates 90 branches across the UAE, is present in seven markets worldwide and is expanding its global footprint to further grow and develop the industry. Serving close to 1.7 million customers, DIB offers its growing consumer base an increasing range of innovative Sharia compliant products and services.
DIB has been proactive in creating partnerships and alliances at both the local and international level. The bank has established DIB Pakistan Limited, a wholly owned subsidiary which has a network of more than 243 branches across 62 major cities in Pakistan. DIB also received regulatory approval to increase its shareholding in PT Bank Panin Syariah in Indonesia to 40 percent.
Embarking on a newly established growth agenda in 2014, the Bank has been a leading performer in the UAE financial sector over the last three years with record breaking performance despite volatile market conditions. The massive growth has seen DIB’s market share cross over 6%, the financing book nearly doubling and deposits growing by over 50% during the same period. Even more impressive is the more than 100% growth in profits in the last three years as DIB joined the exclusive USD 1 bln profit club in the country.
The Bank’s ultimate goal is to make Islamic finance the norm, rather than an alternative to conventional banking for businesses and consumers worldwide. DIB has won a range of accolades that are testament to these efforts across diversified areas, including retail, corporate and investment banking, as well as CSR and consultancy services. Consequently, DIB has been recognized as “Best Islamic Bank in the UAE" at the 2016 World Finance – Islamic Finance Awards, and has received four major accolades at the 11th Islamic Business and Finance Awards 2016, including “Best Retail Bank in the UAE, Best Corporate Bank in the UAE, Best Sukuk Arranger and Best Islamic Bank”. In addition to the “Best Sukuk House” awarded at the EMEA Middle East Banking Awards 2016, DIB was also honored with record twelve accolades at the Islamic Finance News Awards 2016, receiving among the awards “Best Overall Islamic Bank” and “Best Islamic Bank in the UAE” for the second consecutive year. These awards were in addition to the eight landmark transactions the Bank was recognized for at the 2016 IFN “Deals of the Year” Awards including “UAE Deal of the Year”.
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For more PR information, please contact:
Dubai Islamic Bank Weber Shandwick
Jawaher Juma Al Shamsi Grace Wittenberg
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Direct: +971 4 207 5314 Direct: +971 4 445 4254
Email: jawaher.alshamsi@dib.ae Email: GWittenberg@webershandwick.com
© Press Release 2017
