Dubai Islamic Bank (DFM: DIB), the first Islamic bank in the world and the largest Islamic bank in the UAE by total assets, today announced its 1st Half results for the period ended June 30, 2014.

Results Highlights

Significant enhancement in profitability stemming from growth in core business:


Focused growth in assets in key business segments:


Continued improvement in asset quality with increase in provision coverage


Strong and stable funding base with consistent growth in customers' deposits


Robust Capitalization


Enhancing value for shareholders


Recent Awards

Management's comments on the financial performance of the financial year:

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


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


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


Financial Review

Income Statement highlights for the half year ended 30 June 2014



Total revenue

Total revenue for H1 2014 increased to AED 3,056 million from AED 2,714 million in H1 2013, an increase of 12.6%. The increase is mainly due to robust growth in investing and financing activities in both corporate and consumer businesses by 18% and investment in Sukuk by 20%. Corporate clients have shown significant rise in activities, both funded, non-funded and transactional resulting in higher funded and non-funded income.  Consumer banking continues to deliver strong credit and fee income growth.  Overall fee and commission have increased by 34% to AED 581 million H1 2014 from AED 434 million in H1 2013 largely due to higher client transactional activities in 2014.

Net revenue

Net revenue for the period ended June 30, 2014 amounted to AED 2,659 million; an increase of 25.6% compared with AED 2,117 million in the same period of 2013.  The increase in net revenue is mainly due to higher total revenue coupled savings achieved due to early retirement and maturity of high cost funding resulting in improvement of Net Funded Income Margin by 10 basis points from 3.3% in H1 2013 to 3.4% in H1 2014.

Operating expenses

Operating expenses increased by 14.7% to AED 954 million for the period ended June 30, 2014 from AED 832 million in the same period in 2013.  The cost to income ratio improved to 35.9% from 39.3% in the same period of 2013.

Impairment losses

DIB continues to manage asset quality and non-performing assets by cautious lending and conservative provisioning approach.  Though asset quality has shown further improvements, the bank continued to build provision amounting to AED 355 million during the current period with the aim to improve provision coverage ratio.

Profit for the period

With significant increase in net revenue and improved asset quality with declining impairment charges, net profit for the period ended June 30, 2014, increased to AED 1,337 million from AED 739 million during the same period of 2013, an increase by 81%.

Statement of financial position highlights:

Financing portfolio

Net financing assets grew to AED 66.1 billion at June 30, 2014 from AED 56.1 billion at December 31, 2013, an increase of 18%.  Consumer banking assets increased by 10% to AED 29.0 billion at H1 2014 compared to AED 26.5 billion at 31 December 2013.  Corporate banking assets grew significantly by 23% to AED 41.9 billion in H1 2014 compared with AED 34.1 billion at 31 December 2013. 

Non-performing assets have shown a consistent decline with NPL ratio improving to 9.3% in H1 2014 compared to 11.1% at the end of 2013.  Impaired financing ratio also improved to 7.7% in H1 2014 from 8.8% at the end of 2013.  The reduction is mainly due to reduction in NPL coupled with increase in overall performing assets.  Provision coverage improved to 70.6% in H1 2014 compared to 64.0% at the end of 2013.  

Sukuk Investments

Sukuk investments increased by 20% in H1 2014 to AED 13.9 billion from AED 11.6 billion at end of 2013.  

Customer Deposits

Customers' deposits as of June 30, 2014 increased by 20% to AED 94.8 billion from AED 79.1 billion as of December 31, 2013.  The customer deposits have grown largely due to increase in CASA which comprise 43% of total deposits amounting to AED 41.0 billion at June 30, 2014 compared with AED 33.8 billion at December 31, 2013. 

The increase in customers' deposits is in line with the growth in investing and financing assets resulted maintaining financing to deposit ratio at 70% H1 2014.


Capital and capital adequacy

Capital adequacy ratio reduced from 18.2% at end of 2013 to 16.4% in H1 2014. The decrease is mainly due to growth in investing and financing assets and sukuk coupled with change in regulation to maintain higher capital requirements on market and operational risks.

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