Dubai Islamic Bank's 9-month net profit steady at Dh854 million

Dubai Islamic Bank (DIB) on Sunday announced a net profit of Dh854 million for the first nine months of 2012, compared to Dh850 million for the corresponding period of 2011.

For the third quarter of 2012, the bank reported a net profit of Dh298.5 million.

The bank’s total assets as of September 30, 2012, stood at Dh93.7 billion, compared to Dh90.6 billion on December 31, 2011, an increase of 3.5 per cent. DIB’s operating profit, that is, net profit before impairment losses, has increased by 9.6 per cent in the third quarter of 2012 compared with the corresponding period in 2011.

For the third quarter of 2012,  DIB set aside Dh309 million for impairments, compared to 217 million in the same quarter of 2011, an increase of 43 per cent.

For the first nine months of 2012, DIB made provisions of Dh849 million, compared to 718 million over the same period of 2011.

Customer deposits increased 3.3 per cent to Dh 66.9 billion as of September 30, 2012.

“The performance of Dubai Islamic Bank in the third quarter of 2012 was notable for delivering strong results while continuing with its conservative approach to provisioning, as demonstrated by increases in key balance sheet ratios,” said Mohammed Ibrahim Al Shaibani, Chairman of Dubai Islamic Bank. “This prudent business strategy positions the bank well to benefit from positive economic conditions in the UAE.”

Abdulla Al Hamli, CEO, Dubai Islamic Bank, said: “Alongside enhancing the efficiency of our operations, the focus for DIB over the past quarter has been the introduction of innovative products to the market, such as our Shaatir children’s savings account. Thanks to our stable, well-diversified funding base and innovative product mix, DIB remains uniquely placed to serve the financing needs of individuals and businesses across the UAE.”

The third quarter of 2012 witnessed the launch of the Shaatir savings account, DIB’s first account developed specifically for children. The account is designed to help young people understand financial responsibility from an early age, and includes a number of  features that encourage children to save towards specific goals in their lives.