Dubai: Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE by total assets, reported a group net profit of Dh3.83 billion, up 37 per cent compared Dh2.8 billion in 2014.
DIB Board has recommended distribution of a cash dividend of 45 per cent, subject to Central Bank of UAE and AGM approval.
Total income increased to Dh7.54 billion, up 21 per cent compared with Dh6.23 billion for 2014. Net revenue increased to Dh6.48 billion, up 19 per cent compared with Dh5.43 billion for the year 2014.
“2015 has once again been a remarkable year for DIB with significant growth seen across all the key businesses. Despite very challenging times in the global markets, the UAE economy still grew by about 3 per cent and remains the most diversified among GCC countries,” said Mohammad Ebrahim Al Shaibani, Director-General of The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank.
DIB’s total assets were up 21 per cent to Dh149.9 billion at the year-end 2015 compared to Dh123.9 billion at end of 2014.
The bank reported strong growth in earning assets across all business segments.
Net financing assets grew 31 per cent year on year to Dh97.2 billion in 2015 from Dh73.9 billion in 2014. While consumer banking gross financing assets increased by 19 per cent to Dh36.5 billion for year ending 2015, corporate banking saw another strong year growing by 40 per cent to Dh56 billion for the year ending 2015. Sukuk investments at Dh20.1 billion increased by 24 per cent year on year.
On the liability side, DIB’s customer deposits for 2015 increased by 19 per cent to Dh110 billion from Dh92.3 billion at year-end 2014. CASA [current and savings accounts] continues to be a significant portion comprising 41 per cent of total deposits contributing to the low cost of funds.
“The full year 2015 results demonstrated the strength of and commitment to our strategic growth agenda built around a transformed and new-look DIB. We have managed another record-breaking year and a historic landmark as the bank joins the billion dollar profit club in the UAE,” said Dubai Islamic Bank Group Chief Executive Officer, Dr. Adnan Chilwan.
The bank reported robust improvement in asset quality with impairment losses declining 42 per cent in 2015 to Dh410 million, compared with Dh703 million for the year 2014. Non-performing assets showed a consistent decline with non-performing loans (NPL) ratio improving to 5 per cent in 2015, compared with 8 per cent in 2014.
Impaired financing ratio also improved to 4.1 per cent in 2015 from 6.5 per cent at the end of 2014, primarily because of the reduction in absolute NPLs due to settlements and recoveries. Provision cash coverage ratio improved to 95.4 per cent compared with 78 per cent at end of 2014. Overall coverage ratio including collaterals at discounted values was at 147.6 per cent at year end 2015.
Operating expenses increased by 17 per cent to Dh2.2 billion for the full year 2015. The increase is largely attributed to variable operating cost in line with increase in business volumes, including direct sales and marketing costs primarily related to staff. Despite cost growth, the cost to income ratio improved to 34.3 per cent on account of higher revenue leading.
DIB’s capital adequacy ratio stood at 15.7 per cent for the year ended 2015, and T1 ratio at 15.5 per cent, depicting strong capitalisation with both ratios being well above regulatory level.
While the bank’s earnings per share increased to Dh0.81 in 2015 from Dh0.61 in 2014, return on assets increased by 40 basis points to 2.80 per cent in 2015 from 2.4 per cent in 2014. Return on equity increased by 190 basis points to 19.8 per cent in 2015 from 17.9 per cent in 2014.
