The lender said that strong income growth from the bank’s key businesses coupled with a well-disciplined cost management supported the robust growth in net profit.
Wednesday 17, July 2019 BY KUDAKWASHE MUZORIWA
Dubai Islamic Bank (DIB) has reported a net profit of AED 2.75 billion in H1 2019, a 13 per cent increase compared to AED 2.44 billion a year earlier.
HE Mohammed Ibrahim Al Shaibani, the Chairman of Dubai Islamic Bank, said, “With the double-digit rise in profitability, the bank remains in a strong position to capture opportunities in the market whilst delivering robust growth and returns for all stakeholders.”
The bank’s total income was AED 6,98 million, a 25 per cent year-on-year increase.
DIB stated that the strong income growth is attributable to the lender’s robust growth in income from Islamic financing and investing assets growing at 19 per cent as well as income from investments in Islamic Sukuk which grew at 33 per cent.
Additionally, the bank also posted net revenue of AED 4,79 million, 16 per cent increase compared to AED 4,04 million in H1 2018. The bank’s efforts to diversify into key sectors of the domestic economy supported the continued core revenue growth over the past few years.
“We have built a dynamic, flexible and adaptive organisation that can sustain business and growth in any kind of economic environment,” added Dr. Adnan Chilwan, DIB’s Group Chief Executive Officer.
DIB is proceeding with plans to acquire Noor Bank as the UAE’s biggest Islamic lender joins a regional wave of mergers and acquisitions, the tie-up is expected to create a lender with AED 277 billion ($75 billion) in assets.
Last month, the lender’s Board of Directors recommended DIB’s shareholders to consider the acquisition of Noor Bank after obtaining necessary approvals from regulatory authorities.