Dubai Islamic Bank Repays Dhs3.7bn To UAE Finance Ministry
The bank received the deposit in 2008 to boost its financial strength during the financial crisis.
Dubai Islamic Bank (DIB) announced that it has repaid Dhs3.75 billion to the UAE finance ministry in full and ahead of contractual maturity, thanks to ‘a robust financial position and strong liquidity’.
The bank received the deposit from the ministry in 2008 to boost liquidity after the financial crisis hit lenders in the country. DIB has received the necessary regulatory and government approvals to repay the amount, it said in a statement.
Abdulla Al Hamli, CEO, DIB said: “We are extremely thankful to the UAE government, the finance ministry and the central bank for the decisive and timely measures taken during the crisis to support the banking sector in shoring up liquidity.”
“In March 2012, the bank repaid its maturing $750 million sukuk from its own resources and the robust liquidity position has enabled DIB to settle the MOF deposit as well,” added Dr. Adnan Chilwan, deputy CEO, DIB.
Last month, the lender successfully priced a $1 billion Tier 1 Capital-eligible issuance with a perpetual maturity to provide a boost to its current Tier 1 Capital ratio.
Chilwan added: “DIB’s recent issuance was extremely well received by investors across the globe, evidenced by the fact that it was oversubscribed 14 times. This has pushed the bank’s Tier 1 Capital ratio from 13.9 per cent to 18.7 per cent, based on year end 2012 balance sheet size.”
DIB group reported a net profit of Dhs1.19 billion for 2012, 13 per cent higher than 2011.
The bank is the latest among UAE lenders who are repaying amounts taken from the government during the crisis in 2008.
On Sunday, Abu Dhabi Islamic Bank (ADIB) said that it had repaid the Dhs2.2 billion that it received from the government in 2009.
Late last month, the UAE’s largest lender, National Bank of Abu Dhabi (NBAD) also announced that it had received regulatory approval to repay Dhs3 billion to the government.
The bank said that it would repay the amount in equal instalments in the first and second quarters of this year. NBAD already repaid Dhs2.6 billion to the government in 2012.