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Abu Dhabi, UAESunday 24 February 2019

DIB reports 11% rise in 2018 net profit beating analysts' estimates

The DIB group's growth was boosted by increased revenues and assets

Dubai Islamic Bank reports 11 per cent rise in its full-year 2018 net profit. Bloomberg
Dubai Islamic Bank reports 11 per cent rise in its full-year 2018 net profit. Bloomberg

Dubai Islamic bank, the largest Sharia-compliant lender in the UAE by assets, reported an 11 per cent rise in full-year 2018 net profit, comprehensively beating analysts’ estimates as its revenues grew and asset base expanded.

The group net profit for the 12 months ending December 31, climbed to Dh5 billion, DIB said in a statement to the Dubai Financial Market, where its shares are traded. The mean estimate of DIB’s full-year net income by three analysts polled by Bloomberg came in marginally above Dh4bn.

The bank's performance “is a clear indication of the success of our sustained and continued execution of our proven strategy," said DIB’s group chief executive Adnan Chilwan. "Focus on profitability remains the core driver in our growth agenda... our ability to innovate around the dynamic market conditions gives us confidence that we will continue to outperform and take market share which has now moved to double digits at around 10 per cent."

Net revenue for the year increased 6.7 per cent to Dh8.2bn. Operating expenses fell to Dh2.32bn from Dh2.34bn, while DIB’s net operating income before impairment charges grew by 10 per cent year-on-year to Dh5.88bn. Net financing and sukuk investments rose 11.8 per cent to Dh175.9bn.

Total assets increased 7.9 per cent to Dh223.7bn. Corporate banking financing assets grew about 13 per cent to Dh101bn while consumer business reached to Dh39bn, supported by DIB’s new financing of nearly Dh13bn. The commercial real estate concentration managed within the guidance at around 19 per cent, the lender noted.

For the year ended 2018, non-performing funding ratio and impaired financing ratio came in at 3.4 per cent and 3.3 per cent, respectively, the lender said without giving comparative figures. Cash coverage for the year stood at 112 per cent, it said.

Updated: January 30, 2019 04:46 PM

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