Dubai Islamic Bank posts record profits for 2014
The bank has done exceptionally well in terms of performance, Chilwan told reporters at a media roundtable on 25 January.
DIB recorded net profits of AED2.8bn ($762.3m) in 2014, marking a 63 per cent increase on the AED1.7bn recorded in 2013.
It saw lending volumes soar by 32 per cent, with its loan book standing at AED74bn.
The growth in lending exceeded the banks original target of 10-15 per cent growth it set at beginning of last year.
The loanbook and the sukuk (Islamic bond) book combined totalled AED90bn, an increase on the AED67.7bn recorded in 2013, which Chilwan says is the key achievement for the bank in 2014.
DIB also saw the quality of its assets improve over the course of 2014, with its non-performing asset (NPA) ratio falling to 8 per cent from 11.1 per cent.
It is aiming to further reduce this ratio to 6 per cent during 2015.
The concentration of the banks business on the real estate sector has also fallen, with approximately 24 per cent of its current financing portfolio focused on real estate, 36 per cent on corporates and 41 per cent on the consumer sector.
DIBs portfolio had been skewed in favour of the volatile real estate sector in the past, which had left it vulnerable in 2008-09 when the UAEs property market crashed.
DIB raised a $1bn tier 1 sukuk issuance at the beginning of 2015 to increase its capitalisation levels and position the bank for future growth.
You might also like...
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.