Dubai, March 2 2008: Dubai Islamic Bank Pakistan (DIBP), a wholly owned subsidiary of Dubai Islamic Bank PJSC (DIB), saw total assets under management reach Rs21 billion in value, growing more than 152 per cent in the 2007 calendar year. The bank's enormous expansion makes it one of the fastest growing banks in Pakistan.
Explaining DIBP's achievements more fully, Abdul Monem Bastaki, Head of the International Division of DIB, stated: "Pakistan's operations recorded growth of 152 per cent in its total asset base, which stands at PKR21 billion as of December 2007, and growth of 273 per cent in deposits to Rs16.1 billion. A network of 17 branches covering all the major cities of Pakistan now exists as well."
As part of its international strategy to promote world-class Islamic banking and to leverage the DIB brand name globally to enhance shareholder value, DIB selected Pakistan as one of its key destinations for expansion in fiscal year 2005, primarily driven by Pakistan's strong growth potential for Islamic banking.
Islamic banking remains one of the fastest growing segments in the banking industry. The size of Islamic banking grew by 11.7 per cent during the last fiscal quarter against a contraction of 1.4 per cent for the global banking industry as a whole.The share of Islamic banking has increased to 3.6 per cent in the same period, up from 3.2 per cent in the previous quarter.
Bastaki said: "We feel that it is a good time for DIB to divest a portion of its shareholding in DIBP either through listing or private placement to maximize shareholder value. We are currently evaluating different options in this regard, keeping in view the State Bank of Pakistan's regulations and our own licensing requirements."
The banking sector in particular has witnessed stellar performance on the Karachi Stock Exchange 100 Index, with current trading range of price to book value multiples of two to four times.
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About Dubai Islamic Bank:
Dubai Islamic Bank (DIB), established in 1975, is the first Islamic bank to have incorporated the principles of Islam in all its practices. DIB is a public joint stock company, and its shares are listed on the Dubai Financial Market.
The bank reported AED 2.51 billion in net profit for the year ended December 31, 2007, rising by 61 per cent compared to AED 1.56 billion for the year ended December 31, 2006. The bank recorded a total revenue of AED 7 billion for the year ended December 31, 2007, rising by 46 per cent compared to AED 4.8 billion for the year ended December 31, 2006. The profit for 2007, including depositors' profits, stood at AED 5.2 billion, an increase of 58 per cent compared to AED 3.3 billion for the year ended December 31, 2006. Total assets in 2007 reached to AED 84.3 billion, an increase of 31 per cent compared to AED 64.4 billion in 2006.
DIB recently announced the breaking of another world record by raising US$3.52 billion sukuk for the Nakheel Group. This sukuk adopted a structure never used before in Islamic or conventional banking history. The Nakheel sukuk brings the total sukuk raised by DIB in the UAE to more than US$9 billion (AED 33 billion), an unprecedented amount in the history of Islamic banking.
The bank has been proactive in creating partnerships and alliances at both the local and international level. DIB has adopted an aggressive expansion strategy, which started with the establishment of DIB Pakistan Limited, a wholly owned subsidiary of DIB. DIB opened its first representative office in Turkey to enhance its access to that market. DIB has acquired 60 per cent of Al Khartoum Bank and is among the parent banks of Emirates and Sudan Bank (ESB). These steps mark DIB's ambitious plans to roll out its operations into regional and international markets as part of its overall strategic plan.
For further information, please contact:
Nicholas Nesson / Ghaleb Zeidan
ASDA'A Public Relations
Exclusive Affiliate of Edelman, Middle East & North Africa
Dubai, UAE
Tel: 971-4-3355969
Fax: 971-4-3356080
E-mail: n.nesson@asdaa.com / g.zeidan@asdaa.com
© Press Release 2008
