Customers at Dubai islamic bank at Dubai Mall. Dubai Islamic Bank Group (DIB Group) on Wednesday reported a net profit of Dh5.1 billion. Image Credit: Gulf News Archives

Dubai: Dubai Islamic Bank Group (DIB Group) on Wednesday reported a net profit of Dh5.1 billion, up by 2 per cent year on year.

The bank said the Noor Bank acquisition is complete, with integration underway to realize the synergies and boost returns.

DIB Board has recommended an increase in foreign ownership limit to 40 per cent, subject to regulatory and corporate approvals.

“DIB has continued to challenge the norms and prove its resilience year on year, despite global and regional growth constraints. Our sustained earnings, with profitability of over Dh5bn, is a clear manifestation of the strategic direction we have set in place, in order to provide only the best and most innovative services to our ever-growing customer base,” said Dubai Islamic Bank Group Chief Executive Officer, Dr. Adnan Chilwan.

The bank continued its strong performance with a double digit rise in total income of 17 per cent year on year, now reaching Dh13.68 billion for the year ending 2019.

Net financing & sukuk investments increased to Dh184.2 billion for the year ending 2019 from Dh175.9 billion at the end of 2018, a rise of nearly 5 per cent.

“The bank’s growth performance over the years has resulted in a balance sheet expansion to more than Dh230bn, with a market cap crossing $10 billion. With the much anticipated 2020 major economic events, DIB’s strategic focus remains solid towards growing our customer base and maximizing the value for our shareholders,” said Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank.

Customer deposits for the year ending 2019 reached Dh164 billion from Dh156 billion at the end of 2018. The bank’s high margin sukuk portfolio reached Dh33 billion in the year ending 2019 compared to Dh31 billion in 2018.

Operating expenses for the year ending 2019 remained broadly stable at Dh2.35 billion compared to Dh2.32 billion in 2018. Cost to income ratio continued its healthy trend, now at 26.9 per cent compared to 28.3 per cent at the end of 2018.

For the year ending 2019, non-performing financing ratio and impaired financing ratio stood at 3.94 per cent and 3.89 per cent, respectively.

Capital adequacy ratios remained robust with overall CAR and CET 1 ratio for the year 2019, standing at 16.5 per cent and 12 per cent respectively.