Dubai Bank in black ahead of target

Dubai Bank has broken even to post a Dh4 million net profit for 2004 against a loss of Dh36 million for the previous year.

The strong growth recorded on all fronts helped the bank see an earlier-than-expected break-even in 2004 although it was projected to achieve a profit only by 2006, according to CEO Ziad Makawi.

Operational revenues jumped 156 per cent to Dh111 million, and total assets grew 100 per cent to Dh2.4 billion. Loans and advances rose a substantial 54 per cent to Dh1.3 billion while deposits grew 190 per cent to Dh1.9 billion.

Dubai Bank, which increased its capital from Dh300 million to Dh500 million last year, plans to increase its branch network with a new office in Sharjah soon and another in Abu Dhabi, which will be its second branch in the capital. With the proposed increase in activities across a broad front, the bank may also plan to increase capital again in future.

The bank, in which the retail sector accounts for 44 per cent of its business, has also chalked out plans to strengthen its investment banking operations.

"We have faced different challenges and increasing competition in Dubai since the inception of the bank," Makawi said. But the bank will continue to build upon its foundations in retail and corporate banking while contributing to the region's capital markets and investments.

"Dubai Bank has achieved a memorable milestone, complementing the success of Emaar and its other subsidiaries," said Mohammad Ali Al Abbar, vice-chairman. "We are delighted with the ongoing growth and success at Dubai Bank and Emaar."