Dubai: Dubai Islamic Bank (DIB), one of the UAE's top five banks and the world's third largest Islamic bank, said Monday that it is pursuing aggressive growth strategy to achieve 15 per cent growth in customer base and 20 per cent growth in retail assets.
Despite extremely challenging financial conditions globally, the bank projects that the expansion of its retail banking business, including 10 new branch openings in the UAE this year, will contribute significantly to its projected annual balance sheet growth and will account for approximately 47 per cent of the bank's revenue for 2009.
The bank plans to not only focus on traditional bricks-and-mortar branches but also has a strategy to enhance its network through Al Islami Express Banking Centres as well as state-of-the-art technological channels.
"While we recognise the challenges that lie ahead, we are confident that the bank's 2009 growth strategy will deliver significant, sustained returns," said Khalid Al Kamda, Group Managing Director.
"With a renewed focus on our already robust retail operations, DIB will continue to expand our customer base while diversifying income sources.
"Importantly, this strategy will allow the bank to continue to strengthen its overall risk profile, which is especially critical given current market conditions," he said.
The bank maintained an extremely strong financing-to-deposit ratio of 79 per cent as of December 31, 2008, a clear indication of DIB's healthy liquidity position. DIB also reported a robust capital adequacy ratio of 12.2 per cent as of December 31, 2008.
The bank additionally made provisions totalling Dh496 million related to its exposure to CCH and related individuals.
DIB has already foreclosed on The Plantation, a major development in Dubailand covering more than 20 million square feet, and continues to actively pursue other securities related to this historical transaction.
DIB management said that the bank believes that the current provisions together with collaterals forcelosed and being pursued are adequate to cover its exposure to CCH, even in the current economic downturn.
"As we move forward with our 2009 growth strategy, we are pleased to close this chapter and focus our complete attention on meeting the needs of our clients, shareholders and other stakeholders," said Abdullah Al Hamli, Chief Executive Officer.