Net profit crosses AED 4.50 billion, up by 11%:

Total income crosses AED 10 billion mark, up by 18%
Total assets grew by 19% to reach to AED 207.3 billion
Financing assets increased by 16% to AED 133.3 billion
Deposits rose by 20% to AED 147.2 billion
Credit ratings saw upgrades during the year with outlook as Stable

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.

Full Year 2017 Results Highlights:

Profitability remains on a robust northbound trajectory driven by core business growth and effective cost management

Group Net Profit increased to AED 4,504 million, up 11% compared to AED 4,050 million for 2016.
Total income increased to AED 10,199 million, up 18% compared to AED 8,636 million for 2016.
Net Operating Revenue increased to AED 7,687 million, up 14% compared to AED 6,761 million for 2016.
Efficient and proactive cost management resulted in operating expenses remaining nearly flat at AED 2,336 million compared to AED 2,297 million for 2016.
Net operating income before impairment charges grew by 20% to AED 5,351 million compared to AED 4,464 million for 2016.
Cost of credit risk reduced to 60 bps compared to 80 bps in 2016.
Cost to income ratio declined to 30.4% compared to 34.0% at the end of 2016.

Financing continues to drive balance sheet growth as share of wallet rises to around 9% of the market

Net financing assets rose to AED 133.3 billion, up by 16%, compared to AED 114.9 billion at the end of 2016.
Sukuk investments increased to AED 24.0 billion, a growth of 3%, compared to AED 23.4 billion at the end of 2016.
Total Assets stood at AED 207.3 billion, an increase of 19%, compared to AED 174.9 billion at the end of 2016.

Asset quality improvement continues as the Non Performing Financing Ratio drops to below guidance levels

NPF ratio continues its downward trajectory improving to 3.41%, compared to 3.9% in 2016.
Cash coverage ratio maintained at 118%.
Overall coverage including collateral at discounted value now stands at 157%.

Liquidity impact despite market beating financing growth

Customer deposits stood at AED 147.2 billion compared to AED 122.4 billion at the end of 2016, up by 20%.
CASA deposits increased by nearly 13% to AED 53.6 billion from AED 47.4 billion as at end of 2016 leading to a robust 36% constitution of the total deposit base.
Financing to deposit ratio stood at just under 91%, indicating a healthy liquidity position
Focus on diversification and securing long term funding saw another successful senior sukuk issuance of USD 1 billion during Q1 2017.

Robust capitalization levels creating growth capacity

Capital adequacy remained strong at 17.0%, as against 12% minimum required.
Tier 1 CAR stood at 16.5% under Basel II, against minimum requirement of 8%.

Quality growth in profitability continues to support shareholder returns

Earnings per share stood at AED 0.78 in 2017.
Return on equity stood at 18.7% in 2017.
Return on assets steady at 2.34% in 2017.

Management’s comments on the financial performance for the FY2017:

His Excellency Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank, said:

The UAE banking system retains its strong financial fundamentals with sector assets crossing the USD 700 bln mark, making it the largest in the GCC. The growth was supported by strong capitalization as well as robust profitability.
2017 has been another remarkable year for the bank as we continue to make progress on our growth and expansionary agenda in both local and international markets.
The bank has weathered the challenges across the region as well as those emanating from the global economic slowdown extremely well and with a more positive outlook forecasted for the UAE and global economy, the coming years look even more promising.
We remain fully in sync with Dubai and the UAE’s plans in building a diversified and attractive economic hub for Islamic finance that serves to connect the globe from our home base here.

Dubai Islamic Bank Managing Director, Abdulla Al Hamli, said:

The UAE continues to be one of the leading Islamic finance markets, with assets now reaching around $150 billion, a 7% growth this year.
We remain well-positioned to capitalize on improving economic conditions in UAE, where GDP is expected to increase in 2018 in the run up towards major economic events such as the EXPO 2020.
Our ongoing investments in digital technology and services has transformed DIB into a more efficient and secure banking institution that is able to provide its customers with a highly enhanced banking experience across a diversified and robust network of branches and channels.