Dubai bank reports 34 per cent rise in profits

15 April 2015

Dubai Islamic Bank continues to lower bad loan ratio

The Dubai Islamic Bank (DIB) has reported net profits of AED850m ($231.4m) in the first quarter of the year, an increase of 34 per cent compared to the same quarter in 2014.

The sharia-compliant bank’s financing assets also grew by 11 per cent to reach AED82bn, compared to the same time period last year.

The growth rate is edging close to the bank’s target of 15-20 per cent growth, of its financing book, in 2015 on 2014 figures.

The bank’s CEO Adnan Chilwan outlined the bank’s targets at a press briefing in January, saying that pushing down the ratio of non-performing assets (NPAs) was another key target for the bank.

The NPA ratio fell to 7 per cent in the first quarter of the year, declining from 8 per cent at the end of 2014. The bank is aiming to further decrease this to 6 per cent by the end of 2015.

Customer deposits also grew to AED104.1bn in the first quarter, an increase of 13 per cent on Q1 last year. The bank has a financing to deposit ratio of 79 per cent.

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.

The bank also acted as a joint lead manager on the sukuk raised earlier this year for the Dubai-based Emirates Airline

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