Dubai: Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE by total assets, on Sunday reported a net profit of Dh2.8 billion for 2014, up 63 per cent compared to Dh1.7 billion for 2013.

Gross revenue increased to Dh6.3 billion, up 20 per cent from Dh5.3 billion for the year 2013.

”The strong results have been achieved despite challenging conditions in the latter part of the 2014 around oil price and equity market volatility,” said Mohammad Ebrahim Al Shaibani, director-general of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank. “Dubai is strongly positioned to withstand the current volatilities in the oil market given its diversified economy and infrastructure.”

Net operating revenue increased to Dh5.6 billion, up 32 per cent from Dh4.2 billion for 2013 on account of growth in core business. Net operating profit before impairment stood at Dh3.52 billion, up 38 per cent from Dh2.55 billion for 2013.

DIB’s net financing assets, at Dh74 billion at the end of 2014, were up by more than 32 per cent compared to Dh56 billion at the end of 2013. Sukuk investments increased to Dh16.1 billion compared to Dh11.6 billion at the end of 2013, an increase of nearly 38 per cent.

The bank’s total assets were up b 9 per cent Dh123.9 billion at the year end 2014 compared to Dh113.2 billion at the end of 2013.

“Despite the relatively subdued market, the bank has witnessed a 63 per cent hike in net profit and 32 per cent jump in financing book compared to the same period last year, and all stemming from regular, core and normal banking activities,” said Dr Adnan Chilwan, CEO of DIB.

Operating expenses increased by 21 per cent to Dh2.04 billion for the year ended 2014 from Dh1.68 billion in 2013 driven by growth in business activities. This resulted in cost-to-income ratio improving to 36.7 per cent from 39.9 per cent in 2013.

DIB continued to strengthen its balance sheet through prudent lending and a conservative provisioning approach. Non-performing assets have shown a consistent decline with NPL ratio improving to 8 per cent for the year ended 2014, compared to 11.1 per cent at the end of 2013. The impaired financing ratio also improved to 6.5 per cent in 2014 from 8.8 per cent at the end of 2013.

The bank built further provisions during the current period leading to a marked improvement in coverage ratio, which now, stands at more than 78 per cent. Backed by strong collateral, the overall coverage including collateral at a significant discount or distressed value stands at nearly 134 per cent.