DIB Announces 12.5% Dividend

The lender had earlier said that it was advised by the UAE central bank to cut its dividend to 10 per cent.

Dubai Islamic Bank (DIB) has announced the distribution of a 12.5 per cent cash dividend for the year 2011, the lender said in a statement today. The dividend was approved at its annual general meeting and is in concurrence of the UAE central bank, it said.

Earlier this month, DIB had said that it had been asked to reduce its proposed dividend payment. “As advised by the UAE Central Bank, the proposed dividend distribution of Dubai Islamic Bank would be 10 per cent instead of 15 per cent,” DIB had said in a statement to Nasdaq Dubai.

In February, the bank reported that its net profit for 2011 increased by 25 per cent to Dhs1.01 billion, compared to Dhs806 million in 2010. DIB’s total assets reached Dhs90.59 billion last year, up slightly from Dh89.8 billion a year ago.

“We are pleased to be able to share our success in 2011 with our shareholders, and look forward to their continued support in 2012 as DIB maintains its prudent focus on diversification and managed growth,” Mohammed Ibrahim Al Shaibani, DIB’s chairman said in the statement.

DIB also said that it vigorously pursued expansion in 2011: it opened seven new branches in the UAE, including its first stand-alone Al Islami Private Banking branch. It also launched Express Banking Terminals, which allow customers 24-hour access to several banking services.