Dubai: Dubai Islamic Bank (DIB), the largest Islamic Bank in the UAE by assets on Wednesday reported Dh2 billion net profits for the first nine months of 2014, up 72 per cent compared to Dh1.2 billion in the same period last year.

The bank’s gross revenue increased by 17 per cent to Dh4.7 billion million in the first three quarters of this year compared to Dh4 billion in the same period last year.

For the third quarter of this year, DIB reported Dh723 million net profits, up 57 per cent compared to Dh461 million in the same quarter last year.

“The strong positive results for the third quarter 2014 are a clear reflection of the bank’s strategic shift and intense focus on growth. I strongly believe that DIB has just started unlocking the potential that it holds,” said Mohammad Ebrahim Al Shaibani, Director-General of The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank.

The bank’s net revenue for the first nine months of the year increased by 29 per cent to Dh4.1 billion from Dh3.17 billion in the same period in 2013.

Net funded income increased by 21 per cent to Dh2.63 billion at the close of the third quarter this year compared to Dh2.1 billion for the same period in 2013 as it. reported strong growth in fee and commission income by 38 per cent to Dh874 million.

“DIB has emerged as a strong and leading player in the banking and finance sector setting the stage for future progress and growth. We have consistently performed well above the market expectations and are confident of not just sustaining but showcasing even greater achievements in the coming years,” said Dr. Adnan Chilwan, Dubai Islamic Bank’s Chief Executive Officer.

For the third quarter of this year, DIB reported an impairment charge of Dh182.49 million compared to Dh206.34 million in the same quarter last year. For the nine-month period, NPLs continued to decline, leading to reduced impairment losses of Dh538 million at the close of the third quarter of this year compared to Dh751 million in the same period last year.

Bank’s total assets were up by 13 per cent to Dh128.5 billion at September 30, 2014 compared with Dh113.3 billion the year end 2013. Net financing portfolio of the bank increased by 27 per cent to Dh71.1 billion at the close of the third quarter of this year from Dh56.1 billion at year-end 2013.

“Over the last few years, we have invested significant time and money across all key areas of the bank in order to get to a platform of growth. That investment is now clearly paying off,” said Abdullah Al Hamli, Managing Director of DIB.

For the nine-month period NPLs declined on a consistent decline with NPL ratio improving to 8.2 per cent as at September 30, 2014 compared to 11.1 per cent at the end of 2013. Provision coverage improved to 76 per cent at September 30, 2014 compared to 64 per cent at the end of 2013.

The bank showed a strong and stable funding base. Customer deposits were up by 21 per cent to Dh95.5 billion at September 30, 2014 from Dh79.1 billion at December 31, 2013. A stable low cost CASA book continues to form a significant portion of the growing deposit base, currently at 40% of overall customer deposits.