Dubai Islamic Bank (DFM: DIB), the largest Islamic bank in the UAE, today announced its first quarter results for the period ending March 31, 2019.

Q1 2019 Highlights:

Sustained growth in profitability (Q1’ 19 vs Q1’ 18)

• Group Net Profit increased to AED 1,355 million, up 12% compared to AED 1,211 million.
• Total Income increased to AED 3,407 million, up by 26% compared to AED 2,697 million.
• Net Operating Revenue grew to AED 2,307 million, up 17% compared to AED 1,971 million.
• Operating expenses stable at AED 599 million vs AED 590 million in Q1 of 2018.
• Net operating profit before impairment charges grew by 24% to AED 1,708 million.
• Cost to income ratio continues to improve at 28.1% compared to 28.3% at the end of 2018.
• Net Profit Margin grows to 3.19%, depicting profitability focused underwriting.

Expanding Core Business

• Net Financing & Sukuk investments rose to AED 179.3 billion up by 2.0%, compared to AED 175.9 billion at the end of 2018.
• Total Assets stood at AED 226.5 billion, up by 1.3%, versus AED 223.7 billion at the end of 2018.

Asset quality remains a key strength

• NPF ratio stable at 3.4%. Provision coverage ratio is at 112%.
• Overall coverage, including collateral at discounted value, stands at 149%.

Robust Liquidity and Funding position

• Customer deposits rose by 2.3% to reach to AED 159.2 billion from AED 155.6 billion in end of 2018.
• CASA deposit stable at AED 53 billion as of Q1 2019.
• Financing to deposit ratio stood at 92%.

Capitalization ratios remain well above the regulatory thresholds

• Capital adequacy ratio is at 17.5%, as against 13.50% minimum required.
• CET 1 is at 12.8%, as against minimum required of 10.00%, providing significant room for growth under the new Basel III regime.
• ROA increased to 2.44% and ROE at 18.5%, in line with guidance.

Management’s comments for the quarter ending March 31, 2019:

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’s GDP continues to grow crossing USD $400 billion following successful structural reforms, strengthening of fiscal policies as well as growth in the non-oil sectors. The implementation of various initiatives set out to attract investors and businesses are paving the way for sustained growth in the UAE in the years to come.
• The banking sector remains resilient with strong capitalization and rising profitability. DIB continues to progress with robust set of first quarter results with total income growing by 26% to reach to AED 3.4 billion driven by consistent strong growth across our businesses.
• Global market optimism is returning as reflected by the positive index performances as well as increasing trade volumes in the UAE financial markets since the start of the year.

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

• Global oil prices continue its upward trend since the start of the year. This, together with stimulus initiatives being put in place, will boost economic activity within the UAE and promote public spending as well as heightened private and public sector confidence.
• As digital technology and innovation makes further inroads into the financial industry, DIB ensures that the bank is at the forefront of these events with the launch of a digital lab, which will be the home of digital innovation and advancement for the bank.

Dubai Islamic Bank Group Chief Executive Officer, Dr. Adnan Chilwan, said:

• DIB’s growth is synonymous with that of UAE. We have proven that year-on-year, quarter-on-quarter. Our latest, 1st Quarter net profit has grown by 12%, reaching AED 1.3 billion. DIB continues to deliver on all fronts by constantly evolving it’s business model based on the needs of its flourishing customer base.
• Steady growth in deposits supported by robust capital has ensured the balance sheet crosses AED 226 billion. Efficiencies continue to strengthen our P&L with cost income ratio now at 28.1%.
• The reaffirmed credit ratings with a stable outlook reiterate the bank's strong balance sheet positioning. ever-growing profitability, and it’s financial standing as a leading player in the region.
• What is encouraging is the support and confidence that investors are extending towards DIB. The successful AT1 Basel llI-compliant sukuk issuance earlier this year shows that our engagement strategy with our investors is clearly helping to further boost the market confidence in the institution.
• Efficiency and returns remain a key part of our growth plans evidenced by Net Profit Margin climbing to 3.19%.
• We are making steady inroads in digitisation and innovation. Our aspirations to be an always-on financial institution are well under way with the successful unveiling of a hub for digital innovation, the DIB Digital Lab.