Dubai Islamic Bank Group Full Year 2017 Financial Results

Group Net Profit increased to AED 4,504 million, up 11% compared to AED 4,050 million for 2016.

17/01/2018 14:23 AST

Dubai Islamic Bank (DFM: DIB), the first Islamic bank in the world and the largest Islamic bank in the UAE, today announced its results for the year ended December 31, 2017.

Profitability remained strong with total income for the year 2017 increasing to AED 10,199 million from AED 8,636 million for 2016, an increase of 18% compared to 2016. Net revenue for 2017 amounted to AED 7,687 million, an increase of 14% compared with AED 6,761 million in 2016. Increasing share of wallet and market penetration supported by new to bank clients remained key drivers for the double digit rise in profitability.

Operating expenses were held nearly flat at AED 2,336 million for 2017 compared to AED 2,297 million in 2016, primarily due to efficient cost management. This resulted in the cost to income ratio improving to 30.4% compared to 34.0% at the end of 2016.

Net profit for 2017, rose to AED 4,504 million from AED 4,050 million in 2016, an increase by 11% emanating from a combination of robust core business growth and effective and efficient cost management.

Net financing assets grew to AED 133.3 billion for 2017 from AED 114.9 billion at the end of 2016, an increase of 16% driven primarily by the continued growth of core businesses. Gross corporate banking including real estate financing assets grew by 20% to AED 99.3 billion whilst gross consumer business ended the year at AED 39.7 billion. Commercial real estate concentration maintained at around 19% and in line with targeted guidance numbers.

Non-performing financing have shown a consistent improvement with NPF ratio improving to 3.4% for 2017, compared to 3.9% at the end of 2016. Impaired financing ratio stood at 3.23% for 2017 from 3.59% at the end of 2016. With the buildup of provision continuing, driven primarily by collective provisioning, cash coverage stood at 118% for 2017 compared to 117% at the end of 2016. Overall coverage ratio including collateral at discounted value maintained at 157%.

Sukuk investments increased to AED 24.0 billion in 2017 from AED 23.4 billion at the end of 2016. The portfolio, primarily built up of listed and UAE based issuers, consists of sovereigns and other top tier names, many of which are rated.

Early capacity creation, with liquidity mobilization continues to spur growth. Customer deposits for 2017 increased by 20% to AED 147.2 billion at the end of 2017, compared to AED 122.3 billion as at the end of 2016. Financing to deposit ratio of 91% as at the end of 2017 indicates one of the strongest liquidity positions in the sector.

Capital adequacy ratio remained robust at 17.0% as of December 31, 2017, whilst T1 ratio stood at 16.5%; both ratios are well above regulatory requirement.

Press Release