DIB profit reaches Dh2.5b on strong asset growth

Dubai: Dubai Islamic Bank (DIB) yesterday reported a 61 per cent jump in its net profit to Dh2.5 billion for 2007, compared to Dh1.56 billion in 2006.

The results were announced following a meeting of the board of directors yesterday, which proposed a bonus share of 15 per cent and a cash dividend of 40 per cent for the year 2007.

The bank's total revenue rose 46 per cent to Dh7 billion last year, up from Dh4.8 billion in 2006.

Profit for 2007, including depositors' profits, stood at Dh5.2 billion, an increase of 58 per cent compared with Dh3.3 billion in 2006.

Total assets in 2007 touched Dh84.3 billion, an increase of 31 per cent compared to Dh64.4 billion in 2006.

Financing and investment operations also delivered strong growth, with total investment and financing assets, including investments in sukuks, reaching Dh48.9 billion compared to Dh35.2 billion in 2006, an increase of 39 per cent.

Customer deposits also showed aggressive growth of 36 per cent over 2006, reaching Dh64.8 billion in 2007 compared to Dh47.7 billion in 2006.

Dr. Mohammad Khalfan Bin Kharbash, Minister of State for Financial and Industrial Affairs and chairman of DIB, said: "DIB signals another year of excellence as it consolidates its leadership position, sets standard for excellence and contributes to the development of the national economy.

"In 2007, DIB managed to build strong partnerships with recognised international financial institutions and tapped into the project market boom sustained by high oil price, high liquidity, strong government support and low interest rates."

In 2007, DIB expanded its investment activities with Millennium Capital, the investment banking subsidiary of the Dubai Islamic Bank Group, which was the first Category 1 lic-ensed Islamic investment bank to operate from the Dubai International Fin-ance Centre.

DIB also successfully completed the Initial Public Offering of property developer Deyaar. The IPO was oversubscribed 14 times, raising Dh45 billion.