Dubai Islamic Posts 11% Q1 Profit Hike

Dubai Islamic Bank (DIB) reported a net profit of Dhs245 million for the first quarter of 2012, an increase of 11 per cent compared to Dhs222 million in the same period last year. The bank’s revenues during the quarter reached Dhs1.23 billion, slightly lower than the Dhs1.28 billion it made during the first quarter of 2011.

The bank’s total assets reached Dhs92.5 billion at the end of the quarter, while customer deposits stood at Dhs68.1 billion, a five per cent rise compared to the end of Q4 2011. DIB said its core business also continued to grow in the first quarter of 2012, with income from financing and investing assets and investment Sukuks increasing by two per cent.

“DIB’s strong start to the year is testament to the bank’s proven business model, robust liquidity position and stable funding base,” said Mohammed Ibrahim Al Shaibani, the bank’s chairman and director-general of The Ruler’s Court of Dubai. “The recent repayment in full of a $750 million five-year Sukuk further underlines the bank’s financial strength,” he said.

DIB maintained a financing-to-deposit ratio of 77 per cent as of March 31, 2012, and made additional provisions of Dhs299 million during the first quarter.

The bank, which saw 2011 net profit increasing 25 per cent year-on-year to Dhs1.01 billion, recently announced the distribution of a 12.5 per cent cash dividend for the year.