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Tue 24 Apr 2007 07:40 PM

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Dubai Islamic banks big profits

The bank's $115m first-quarter profits are up 28% on last year; total income rose 38%.

Dubai Islamic Bank has revealed huge profits for the first quarter of 2007, with net profit reaching AED 424 million ($115m), an increase of 28% compared to AED 332 million for the corresponding period in 2006. Total income rose to AED 1.23 billion, an increase of 38% compared AED 894 million for the corresponding period in 2006.

Customer deposits showed growth of 46%, reaching AED 51.6 billion at the end of the first quarter of 2007, compared to AED 35.3 billion in the first quarter of 2006. The bank's total assets increased by 55% to AED 68.8 billion, compared to AED 44.5 billion in the first quarter of 2006, and financing activities increased 42% to AED 39.4 billion, compared to AED 27.8 billion in the same period of 2006, with both figures excluding IPO-related financing.

Dr. Mohammed Khalfan bin Khirbash, UAE Minister of State for Finance and Industry and Chairman of DIB, said: "After having successfully lead-managed high-profile sukuk for others in the region, DIB successfully completed the issuance of its own inaugural US$750 million sukuk, which was listed on the Dubai International Financial Exchange (DIFX) and London Stock Exchange (LSE). This sukuk witnessed significant interest across the globe with 45 per cent placed with investors in the Middle East, 30 per cent in Europe and the balance in Asia."

Dr. Khirbash highlighted the ongoing investment in national human capital and Emiratisation programme at the bank: "In the UAE, we are rated as the employer of choice not only among UAE nationals, but also across the industry. We proud to be the number one bank in terms of Emiratisation among top UAE banks, with a record 45 per cent of staff composed of UAE nationals."

DIB has recently announced the breaking of a world record by raising US$3.52 billion sukuk for the Nakheel Group. This sukuk adopted a structure never used before in Islamic or conventional banking history. The Nakheel Sukuk brings the total sukuk raised by DIB in the UAE to more than US$9 billion (AED33 billion).

DIB has adapted an aggressive expansion strategy, which started with the establishment of DIB Pakistan Limited, a wholly owned subsidiary of DIB. DIB opened its first representative office in Turkey to improve its access to that market. DIB has also acquired 60% of its stake in Al Khartoum Bank and is also among the parents banks of Emirates and Sudan Bank (ESB).

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