Dubai Islamic Bank Group 1st Half 2017 Financial Results #Dubai - Dubai City Guide
Guest Posts, Link Building, SEO, Pay-Per-Click campaigns
Advanced Search
Trident UAE Conference
Download our Media Kit




Home / News / Company News
Company News

Dubai Islamic Bank Group 1st Half 2017 Financial Results
(19 July 2017)


Robust profitability growth continues with net profit rising by 7% YoY to AED 2.143 billion

Financing assets grew by 9% YoY to AED 125.4 billion
Deposits increased by 16% YoY to AED 141.4 billion

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 first half results for the period ended June 30, 2017.

H1 2017 Results Highlights:

Sustained profitability and growth on the back of managed expenses

Group Net Profit increased to AED 2,143 million, up 7% compared with AED 2,004 million for the same period in 2016.
Total income increased to AED 4,865 million, up 15% compared with AED 4,235 million for the same period in 2016.
Net Operating Revenue increased to AED 3,676 million, up 10% compared with AED 3,356 million for the same period in 2016.
Efficient and proactive cost management led to operating expenses remaining nearly flat at AED 1,162 million compared to AED 1,151 million for the same period in 2016.
Gross cost of credit risk reduced to 55 bps compared to 75 bps for the same period in 2016.
Cost to income ratio declined to 31.6% compared with 34.0% at the end of 2016.

Asset growth remains robust across all core businesses

Net financing assets rose to AED 125.4 billion up by 9%, compared to AED 114.9 billion at the end of 2016.
Sukuk investments increased to AED 26.4 billion, a growth of 13%, compared to AED 23.4 billion at the end of 2016.
Total Assets stood at AED 193.1 billion, an increase of 10%, compared to AED 174.9 billion at the end of 2016.

Asset quality remains resilient as a result of quality underwriting

NPA ratio continues its downward trajectory improving to 3.6%, compared to 3.9% at the end of 2016.
Provision coverage ratio improved to 120%, compared to 117% at the end of 2016.
Overall coverage including collateral at discounted value now stands at 161%, compared to 158% at the end of 2016.

Strong liquidity continues to support asset growth

Customer deposits stood at AED 141.4 billion compared to AED 122.3 billion at the end of 2016, up by 16%.
CASA deposits increased by nearly 13% to AED 53.5 billion from AED 47.4 billion as at end of 2016 leading to a robust 38% constitution of the total deposit base.
Financing to deposit ratio stood at 89%.

Robust Capitalization

Capital adequacy ratio remained strong standing at 16.6%, as against 12% minimum required.
Tier 1 CAR stood at 16.2% 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 0.37 at the end of first half 2017.
Return on assets steady at 2.34% at the end of first half 2017.
Return on equity stood at 18.4% at the end of first half 2017.

Management’s comments on the financial performance for period ended June 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 UAE retains its strong economic fundamentals following an upgrade in its credit outlook to “Stable” during the quarter from Moody’s. The non-oil economy, which is expected to grow above 3% this year, will be a key driver towards the economic growth of the UAE in the coming years.
DIB continues to show remarkable progress with total income now reaching nearly AED 5 billion, a significant increase of 15% compared to the same period last year.
Our international expansion is on track as the bank officially received its license in April from the Central Bank of Kenya to start our operations. This paves the way for the bank’s aspirations in Africa and proliferation of Islamic finance across Asia, Middle East and the East African Belt.

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

The bank’s first half performance continues to remain at the top end of the market.
The strong growth throughout the past few years has now squarely positioned DIB amongst the top 3 Islamic banks in the world.
Over the first half of 2017, the bank also remained focused on serving the UAE community with particular support for healthcare initiatives in line with UAEs vision to be one of the happiest nations in the world

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

DIB continues to demonstrate robust earnings on the back of strong and unyielding focus on key economic growth sectors in the markets and jurisdictions we operate. The 9% growth in financing assets supported by the 16% rise in customer deposits clearly showcases the franchise’s incredible ability to continue to generate liquidity at will while simultaneously deploying the same in quality earning assets.
Despite the strong financing growth, capitalization remains solid with robust CET 1 levels, thanks to the detailed and meticulous capital planning put in place when rolling out our strategy and we remain comfortable even as Basel III is implemented in the near future.
With liquidity pressure easing this year along with hikes in Fed rates, we expect relative improvement in margins, as a significant portion of our financing book will have a favorable impact due to its variable pricing nature.
DIB continues to be a leading player on the Bloomberg League Tables with the last quarter witnessing nearly AED 5 bln worth of syndicated deals.
The significantly enhanced financial position, robust profitability and consistently improving asset quality has led to an upgrade in DIB’s standalone Viability Rating to “bb+” by Fitch. This, along with Moody’s move to change the outlook from ”Stable” to “Positive” earlier is a testament to constantly improving risk profile of the bank and the confidence of the market in DIB’s credit standing.


Download the Dubai City Guide iPhone mobile app is owned and managed by Cyber Gear

  All fields are mandatory
Your Name
Your Comments
 Max 250 characters - Word Count :
Image Verification
Change Image

email print

Sponsored By :           Sponsored Opportunities


Hotels hotels Check out Hotels in Dubai
Shopping shopping A complete Mall & Store Guide
Dining dining Eating out at the coolest spots
Sightseeing sightseeing Things to see & do
DCG Recommends dcg recommends Best of the best in Entertainment
News Alerts
News Alerts
Stay ahead with dubai news
dcg mobile
dcg Mobile
With you wherever you go
rss feed
RSS Feeds
Get the latest
dubai blog
Dubai Blog
Your space, your voice
DCG at a glance