Dubai Islamic Bank (DIB) announced today that its shareholders approved the distribution of a 12.5 per cent cash dividend for the year 2011, with the concurrence of the Central Bank of the UAE.
For the 12 months ending December 31, 2011, DIB reported a net profit of Dh1.01 billion. Earlier, on February 1, 2012, the bank had proposed a cash dividend of 15 per cent to be distributed to its shareholders, but the UAE’s Central Bank advised it to slash the cash dividend to 10 per cent.
In a March 1 statement to Nasdaq Dubai, the bank said: “Dubai Islamic Bank announces that as advised by the Central Bank, the proposed dividend distribution of Dubai Islamic Bank PJSC would be 10 per cent instead of 15 per cent.”
However, it seems the deliberations with the Central Bank eventually resulted in a compromise of 12.5 per cent cash dividend, as announced by the bank today.
“We are pleased to be able to share our success in 2011 with our shareholders, and look forward to their continued support in 2012 as DIB maintains its prudent focus on diversification and managed growth,” said HE Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of DIB.
“The strong financial results delivered by DIB in 2011 are testament to the bank’s proven business model, robust liquidity position and stable funding base,” he said.
In addition, the bank’s AGM reviewed the Fatwa and Sharia Supervisory Board Report, and reappointed Deloitte as the bank’s external auditors.