2015 results: DIB, SIB profits rise, NBAD drop; Mashreq remains static

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Dubai Islamic Bank, Sharjah Islamic Bank, Mashreq and National Bank of Abu Dhabi today announced 2015 results with DIB and SIB registering rise but NBAD saw drop in profits. While Mashreq’s full-year profit remained the same as previous year.

Dubai Islamic Bank (DIB), the United Arab Emirates' largest sharia-compliant lender, posted a 62.8 per cent increase in fourth-quarter net profit on Wednesday, according to Reuters calculations.

The bank made Dh1.15 billion ($313.1 million) in the three months to Dec. 31, Reuters calculated based on its full-year earnings statement as it did not provide a quarterly breakdown.

This compares with a profit of Dh706.3 million in the corresponding period of 2014 and the forecast by an analyst at HSBC for the quarter of Dh915 million.

The bank said in a bourse filing its 2015 net profit rose to Dh3.84 billion, up 37 per cent from the previous year.

The bank's board proposed a Dh0.45 cash dividend for 2015, subject to central bank approval, it added. This is up from Dh0.4 for the previous year.  

Dubai Islamic Bank will require capital in 2016 but has still to decide on which method it will use to raise it, the chief executive of the United Arab Emirates' largest sharia-compliant lender said on Wednesday.

It was still too early to say how much the bank will raise, but it will either be from a bond which enhances its core Tier 1 or its supplementary Tier 2 capital, or through a rights issue, Adnan Chilwan said in a webcast.

In 2016, the bank was targeting loan growth of between 10 and 15 per cent and a net interest margin of between 3.25 per cent to 3.50 per cent, Chilwan added.

Last year, loan growth reached 31 per cent and its net interest margin was 3.76 per cent, the bank said in its annual financial statement published earlier on Wednesday.

The bank posted a 62.8 per cent increase in fourth-quarter net profit, according to Reuters calculations.   

Mashreq bank posts Dh2.4bn 2015 profit

Mashreq, Dubai's third-biggest bank by assets, posted a 13.7 per cent fall in fourth-quarter net profit on Wednesday.

The lender made a net profit of Dh556.2 million ($151.45 million) in the three months to Dec. 31, it said in a statement.

This was down from a profit of Dh644.3 million recorded for the corresponding period of 2014.

The bank's 2015 annual net profit was Dh2.4 billion, the same as in 2014.

Mashreq's impairments reached Dh1 billion at the end of last year, the statement said, down from Dh1.08 billion set aside for bad loans at the same point of 2014.

Loans and advances at December-end were Dh60.2 billion, up 3.7 per cent on the same point of 2014, while deposits over the same period grew 7.5 per cent to Dh73.6 billion.

NBAD 2015 profit drops 6.2%

National Bank of Abu Dhabi , the largest lender by assets in the United Arab Emirates, on Wednesday reported a 24.5 per cent drop in fourth-quarter net profit, missing analysts forecasts.

NBAD, almost 70 per cent owned by an Abu Dhabi state investment fund, made a net profit of Dh1.036 billion ($282.1 million) in the three months to Dec. 31, down from Dh1.372 billion in the same period a year earlier.

Analysts polled by Reuters had forecast an average net profit for the period of Dh1.32 billion.

For 2015, the bank said net profit was Dh5.23 billion, down 6.2 per cent from 2014.

The board proposed a cash dividend of Dh0.4 per share for the year 2015. The cash figure is the same as the payout in 2014, although the previous year also had a 10 per cent stock dividend.  

Sharjah Islamic Bank net profit rises 9%

The Sharjah Islamic Bank, SIB, has announced that it achieved good results with a net profit of Dh409.9 million in 2015 compared to Dh377.2 million in 2014, a 9 per cent increase. The board of directors has also proposed 10 per cent cash dividend.

The balance sheet reflects the bank’s strong performance and sound financial position with total assets reaching Dh29.9 billion at the end of December 2015 compared to Dh26.0 billion at the end of 2014, growing by 14.9 per cent.

Mohammed Abdullah, CEO, said that these results reflect the success of the group's strategy to achieve steady and stable growth across all operations despite the volatility in global and domestic markets. The group will continue its balanced approach securing both shareholders and depositors rights while continuing to provide good returns on their investments.

Liquid assets reached Dh6.9 billion or 23.1 per cent of total assets at the end of December 2015. The bank continued to provide financing facilities to large companies and SME’S in different economic sectors in accordance with its prudent credit policy that takes into consideration the effects of the prevailing market volatility and instability in global and regional capital market on banking operations. Financing facilities reached Dh16.4 billion, an increase of Dh1.9 billion or 13 per cent compared to Dh14.5 billion in 2014.

SIB successfully attracted more deposits during the year as customer deposits reached Dh17 billion growing by Dh2.4 billion or 16.2 per cent.

During 2015, Sharjah Islamic Bank issued a US$500 million five-year sukuk as part of its US$3 billion medium-term notes sukuk programme, thus enhancing the bank's position in the field of international sukuk. It is worth mentioning that this is SIB’s fourth sukuk issuance since 2006 supporting its strategic objectives to diversify sources of funding. As a result sukuk payables reached AED5.1 billion by end of the December 2015 compared to AED3.3 billion at the end of 2014 with an increase of AED1.8 billion or 55.6 per cent.

Total operating income reached Dh1.3 billion in 2015 compared to Dh1.1 billion in 2014, with an increase of Dh176.2 million or 15.5 per cent. Total other income from commissions, investments, subsidiaries and other operating revenues increased by Dh194.9 million or 39.3 per cent to reach Dh692.2 million in 2015 compared to Dh497.2 million in 2014.

Provisioning net of recoveries reached Dh350 million compared to Dh246.5 million in 2014 with an increase of Dh103.5 million or 42 per cent as the bank continued improving its asset quality.

The 2015 provisions include Dh205.0 million specific provisions on non-performing customers and Dh153.0 million in general provisions equivalent to 1.54 per cent  of total customer risk weighted assets, above the central bank requirement of 1.5 per cent.

Sharjah Islamic bank’s strong performance reflected positively on its financial indicators. Basel II Capital adequacy ratio stood at 21.99  per cent  by end of 2015 far above the Central Bank minimum requirement of 12 per cent . The efficiency ratio (cost/income ratio) improved from 40.69 per cent  in 2014 to 37.61 per cent  in 2015.

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