Dubai Islamic Bank posts $471m profit for 2008

Dubai Islamic Bank (DIB) has reported AED1.73 billion ($471m) in net profit for 2008, a small decline compared to 2007.

DIB’s total assets as of December 31, 2008, stood at AED84.6 billion, up slightly compared to the end of the same period in 2007.

Financing activity registered strong growth, bank bosses said, with total financing assets reaching AED52.7 billion in 2008 compared to AED 40.4 billion in 2007, an increase of 30 per cent.

Customer deposits increased two percent to reach AED66.4 billion in the 12 months ending December 31, 2008.

The bank said it maintained a financing-to-deposit ratio of 79 percent as of December 31, 2008, which bank chiefs said was a clear indication of DIB’s healthy liquidity position.

DIB’s full-year results reflected total impairment provisions of AED521 million (including writedowns on its investment portfolio) and mark-to-market losses on equity investments of AED277 million.

The majority of these were recorded in the fourth quarter of the year, one of the primary reasons impacting profitability during the last quarter of 2008.

Mohammed Ibrahim Al Shaibani, chairman of Dubai Islamic Bank, said: “Over the past 12 months, the world has witnessed unprecedented challenges to the stability of the global financial system.

"DIB has prudently managed its core operations during these challenging times. Our long-term strategy of the diversification of both operations and revenue streams continues to prove successful.”

The Board of directors of Dubai Islamic Bank has proposed a cash dividend of 25 percent and bonus share of five percent for 2008.