Dubai: Dubai Islamic Bank (DIB) on Tuesday reported a net profit of Dh1.3 billion for the first quarter of 2019, up by 12 per cent year on year compared to Dh1.21 billion in the same quarter last year.

The bank’s total income reached Dh3.4 billion, up by 26 per cent year on year. Net operating revenue grew to Dh2.3 billion, up 17 per cent compared to Dh1.97 billion.

“DIB continues to progress with robust set of first quarter results with total income growing by 26 per cent to reach to Dh3.4 billion driven by consistent strong growth across our businesses. Global market optimism is returning as reflected by the positive index performances as well as increasing trade volumes in the UAE financial markets since the start of the year,” said Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of DIB.

Net revenue for the first quarter amounted to Dh2.3 billion, an increase of 17 per cent compared with Dh1.97 billion in Q1 of 2018. Operating expenses for the period is at Dh599 million compared to Dh 590 million in Q1 of 2018. Cost to income ratio improved to 28.1 per cent compared to 28.3 per cent in December 2018.

“DIB continues to deliver on all fronts by constantly evolving it’s business model based on the needs of its flourishing customer base. Steady growth in deposits supported by robust capital has ensured the balance sheet crosses AED 226 billion. Efficiencies continue to strengthen our P&L with cost income ratio now at 28.1 per cent,” said DIB Group Chief Executive Officer, Dr. Adnan Chilwan.

The bank’s net financing & sukuk investments increased to Dh179.3 billion for the period ended 31 March 2019 from Dh175.9 billion in Q1 of 2018, an increase of 2 per cent, primarily driven by continued core business growth.

Customer deposits for the period ended 31 March 2019 increased by 2 per cent to Dh159 billion from Dh156 billion in end of 2018. CASA deposit remained stable at Dh53 billion and net financing to deposit ratio stood at 92 per cent.

On the asset quality front non-performing financing ratio and impaired financing ratio stood at 3.4 per cent and 3.2 per cent respectively. Cash coverage stood at 112 per cent and overall coverage ratio including collateral at discounted value reached 149 per cent with cost of risk (on gross financing assets) at 74 bps.

Capital adequacy ratios remained robust with overall CAR and CET 1 ratio deposits for the period ended 31 March 2019 standing at 17.5 per cent and 12.8 per cent respectively.