Dubai Islamic Bank 3rd Quarter 2019 Financial Results

Total income surpasses AED 10.2 billion, up by 20% YoY

Press Release
  • Net Profit crosses AED 4.0 billion, up by 8% YoY
  • ROA rises by 5 bps YoY to 2.36%, ROE is now at 17.6%
  • Cost income ratio at 27.9%, amongst the best in the market. 
Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE, announced its results for the period ending September 30, 2019. 
9 Months 2019 key highlights:
Profitability consistently on the rise (9M ‘19 vs 9M’ 18)
  • Total Income reaches to AED 10,250 million, up by 20% YoY compared to AED 8,532 million.
  • Group Net Profit increased to AED 4,015 million, up 8% YoY compared to AED 3,701 million.
  • Net Operating Revenue grew to AED 6,877 million, up 14% YoY compared to AED 6,055 million.
  • Operating expenses stable at AED 1,771 million vs AED 1,754 million in 9M 2018.
  • Net operating profit before impairment charges grew by 19% YoY to AED 5,105 million.
  • Cost to income ratio continues to improve now at 27.9% compared to 28.3% at the end of 2018.
  • Net Profit Margin at 3.16% in line with guidance for the year.
  • ROA increased to 2.36% and ROE at 17.6%, both in line with guidance.
Strong balance sheet growth
  • Net Financing & Sukuk investments rose to AED 185.7 billion up by 6% YTD.
  • Total Assets stood at AED 229.9 billion, up by 3% YTD.
  • Customer deposits increased to AED 162.9 billion up by 5% YTD.
  • CASA deposits stands at AED 50.7 billion as of 9M 2019 representing 31% of customer deposits.
  • Financing to deposit ratio stood at 93%.
  • NPF ratio is at 3.6% with cash coverage ratio is at 104%.
  • Overall coverage, including collateral at discounted value, stands at 136%.
Capital ratios remain strong
  • Capital adequacy ratio is at 17.6%, as against 13.50% minimum required.
  • CET 1 has increased to 13.1% vs 12.4% in end of 2018 and as against minimum required of 10.00%.
About Dubai Islamic Bank:
Established in 1975, Dubai Islamic Bank is the largest Islamic bank in the UAE by assets and a public joint stock company listed on the Dubai Financial Market. Spearheading the evolution of the global Islamic finance industry, DIB is also the world’s first full service Islamic bank and amongst the top in the world. With Group assets in excess of USD 60bln and market capitalization of nearly USD 9bln, the group operates with a workforce of more than 8000 employees and around 500 branches in its vast global network across the Middle East, Asia and Africa. Serving over 3 million customers across the Group, DIB offers an increasing range of innovative Shariah compliant products and services to retail, corporate and institutional clients.
In addition to being the first and largest Islamic bank in the UAE, DIB has a significant international presence as a torchbearer in promoting Shari’ah-compliant financial services across a number of markets worldwide. The bank has established DIB Pakistan Limited, a wholly owned subsidiary which is the first Islamic bank in Pakistan to offer Priority & Platinum Banking, as well as the most extensive and innovative portfolio of Alternate DistributionChannels. The launch of Panin Dubai Syariah Bank in Indonesia early in 2017 marks DIB’s first foray in the Far East, the bank owns a nearly 40% stake in the Indonesian bank. Additionally, in May 2017, Dubai Islamic Bank PJSC was given the license by the Central Bank of Kenya (CBK) to operate its subsidiary, DIB Kenya Ltd. DIB has been designated as D-SIB (Domestic Systemically Important Bank) in 2018 and was also recently upgraded by international agencies with regards to the bank’s credit rating indicating robust capital position, improving asset quality and strong profitability.

The Bank’s ultimate goal is to make Islamic finance the norm, rather than an alternative to conventional banking worldwide. DIB has won a range of accolades that are testament to these efforts across diversified areas, including retail, corporate and investment banking, as well as CSR and consultancy services. A clear indication of the bank’s leadership position in the Islamic finance sector, DIB has been named the Best Islamic Bank in the various prestigious ceremonies. Recognizing its outstanding performance amongst the world’s Islamic retail banks, the bank was recently named as the “Strongest Islamic Retail Bank in the World” during the Islamic Retail Banking Awards 2018 and “Bank of the Year 2018 – UAE” by The Banker. Reflective of its leadership in the global Islamic finance industry, DIB has also been recognized with a number of accolades including Banker Middle East Awards, Dubai Service Excellence Scheme, Global Finance, The Banker and Islamic Finance News Awards.