Dubai: Dubai Islamic Bank (DIB), the largest Islamic Bank in the UAE by total assets, on Tuesday reported a net profit of Dh1 billion in the first quarter of 2016, up 18 per cent from Dh850 million for the same period in 2015.
“The global markets entered 2016 with continued volatility in the commodities and equities sector. Despite this landscape, the UAE’s domestic banking sector has so far reported healthy results with DIB once again demonstrating its robust positioning by delivering another strong earnings for the period,” said Mohammed Ibrahim Al Shaibani, Director-General of His Highness the Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank.
Total Income increased to Dh2.1 billion, up 22 per cent compared with Dh1.72 billion for the same period in 2015. Net operating revenue increased to Dh1. 69 billion, up 11 per cent compared with Dh1.52 billion for the same period in 2015.
“Last year, we achieved a major milestone by joining the $1 billion profit club in the banking sector in UAE. 2016 promises to be another strong one, with DIB delivering more than Dh1 billion profit in the first quarter,” said Dr Adnan Chilwan, Dubai Islamic Bank Group’s Chief Executive Officer.
DIB’s total assets at Dh164.9 billion at the closer of the first quarter was up 10 per cent, compared with Dh149.9 billion at the end of 2015. Customer deposits, at the end of the first quarter, was at Dh122.5 billion compared with Dh110 billion at year-end 2015, up by more than 11 per cent with CASA (current and savings) book comprising 39 per cent of total deposit base.
Net financing assets at Dh102.9 billion grew by 6 per cent, compared with Dh97.2 billion at the end of 2015. The bank’s impairment losses declined in the first quarter of this year to Dh118 million compared with Dh136 million for the same period in 2015. Cost to income ratio improved to 33.7 per cent compared with 34.8 per cent for the same period in 2015.
While NPLs were on a consistent decline with NPL ratio improving to 4.7 per cent, compared to 5 per cent at the end of 2015, provision coverage ratio improved to 97 per cent, compared to 95 per cent at the end of 2015. Overall coverage including collateral at discounted value now stands at 152 per cent, compared to 148 per cent at the end of 2015.
The bank’s impairment losses declined in the first quarter of this year to Dh118 million compared with Dh136 million for the same period in 2015. Cost to income ratio improved to 33.7 per cent compared with 34.8 per cent for the same period in 2015.
Capital adequacy ratio stands at 15.6 per cent as of March 31, 2016, and T1 ratio at 15.4 per cent. Financing to deposit ratio is at 84 per cent, highlighting significant liquidity.
“As the year progresses, we are confident that the performance leadership demonstrated by DIB over the recent past will carry through the rest of 2016 as we culminate our carefully crafted and progressive three-year growth strategy towards a strong conclusion,” said Chilwan.
