Dubai: Dubai Islamic Bank (DIB) Group on Monday reported a net profit of Dh1.2 billion for the first nine months of the year, up 33.5 per cent compared with Dh899 million reported in the same period in 2012.

The bank attributes a 33.5 per cent increase in net profits to increased core business and lower provision requirements due to improved asset quality and overall improvement in the economic environment in the UAE.

“The bank is clearly on a strong growth agenda and optimally positioned to take advantage of the positive signals emanating from the market here in Dubai and the UAE,” said Dr. Adnan Chilwan, Chief Executive Officer of Dubai Islamic Bank.

Net operating revenue of the bank at the end of the third quarter was Dh3.2 billion, up 5.6 per cent from Dh3 billion in the first nine months of 2012. Operating profit before impairments was up 7 per cent at Dh1.95 billion from Dh1.83 billion in the same period in 2012.

“Throughout the last few years of the global financial crisis, we at DIB have been preparing ourselves for the market to turnaround. I feel proud of the management and the team for the way they have worked together to successfully develop and execute the plans despite the tough economic environment,” said Abdulla Al Hamli, managing director of Dubai Islamic Bank.

DIB’s total assets increased 9 per cent to Dh107.4 billion at the end of the third quarter from Dh98.7 billion at year end 2012.

At the close of the third quarter, gross financing portfolio of the bank was at Dh59.7 billion, up 1.4 per cent compared with Dh 58.9 billion at the end of 2012.

On the liability side, customer deposits were up 19.3 per cent at Dh79.6 billion compared with Dh66.7 billion at the end of 2012. The increase in customer deposits reduced the financing to deposits ratio. The bank’s financing to deposit ratio was at 70 per cent as of September 30, 2013, as against 83 per cent at the end of 2012 and the capital adequacy ratio was at 18.7 per cent compared with 17.4 per cent at end of 2012.

The bank made provisions of Dh751 million in the first nine months of the year compared with D922 million in the same period in 2012. “DIB continues to manage asset quality and non-performing assets by cautious lending and conservative provisioning approach,” the bank said in a statement.

“With the continuous improvement in markets across Dubai and the UAE, DIB is ready to embark on a strong growth agenda as evidenced by the recent results,” said Mohammad Ebrahim Al Shaibani, Director-General of The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank.