Dubai Islamic Bank records 2% profit rise in 2019

UAE’s largest Islamic bank, Dubai Islamic Bank (DIB), posted a 2 per cent year-on year increase in net profit, reaching Dhs5.1bn in 2019 from Dhs5.0bn in 2018, it announced on Wednesday.

DIB’s total income amounted to Dhs13.68bn in 2019, up 17 per cent from Dhs11.73bn in 2018, a statement said.

However, the bank’s 2019 operating expenses remained steady at Dhs2.35bn compared to Dhs2.32bn in 2018.

DIB’s cost to income ratio improved to reach 26.9 per cent in 2019 compared to 28.3 per cent in 2018. Meanwhile, its return on assets (ROA) and return on equity (ROE) stood at 2.25 per cent and 17.1 per cent respectively.

The bank’s total assets also improved 4 per cent year-on-year to reach Dhs231.9bn in 2019.

“The bank’s growth performance over the years has resulted in a balance sheet expansion to more than Dhs230bn, with a market cap crossing $10bn. With the much anticipated 2020 major economic events, DIB’s strategic focus remains solid towards growing our customer base and maximizing the value for our shareholders,” said Mohammed Ibrahim Al Shaibani, chairman, Dubai Islamic Bank. 

Dubai Islamic Bank group CEO, Dr. Adnan Chilwan, said: “Whilst our organic growth has been well above the market over the last five years, CAGR of 13 per cent (assets ’14-’19), we are always on the lookout on how to accelerate this further. Noor Bank acquisition is a prime example of the same, and with the transaction completed, we are now fully geared to push forward with the integration in the shortest possible timeframe, and realize the extensive synergies expected from this deal.”

In January 2020, DIB completed the acquisition of UAE-based Noor Bank to create a lender with total assets exceeding Dhs275bn. The acquisition, structured through a share swap, saw DIB issue 651,159,198 new shares to take its issued share capital to 7,240,744,377 shares.

Read more: Dubai’s DIB completes Noor acquisition to create one of the world’s largest Islamic banks