(MENAFN- Emirates News Agency (WAM)) DUBAI, 25th January, 2015 (WAM)-Dubai Islamic Bank (DFM: DIB), today announced that its net profit surged by 63 per cent to AED 2.80 billion, up 63 per cent in 2014, compared to AED 1.70 billion for 2013.
Gross Revenue increased to AED 6.3 billion, up 20 per cent from AED 5.3 billion for the year 2013, while net operating revenue increased to AED 5.6 billion, up 32 per cent from AED 4.2 billion for 2013 on account of growth in core business.
Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler's Court of Dubai and Chairman of Dubai Islamic Bank, said, "2014 has been an exceptional year for the bank as evidenced by its strongest results in the bank's history with full year net profits reaching AED 2.8 billion, an increase of 63 per cent compared to 2013." He added that the strong results have been achieved despite challenging conditions in the latter part of the 2014 around oil price and equity market volatility. "Dubai is strongly positioned to withstand the current volatilities in the oil market given its diversified economy and infrastructure and DIB's 2014 performance echoes the bank's strategic alignment to support the growth agenda of the Emirate as well as its ambitions to become the global capital of Islamic economy." The net operating profit before impairment stood at AED 3.52 billion, up 38 per cent from AED 2.55 billion for 2013. The cost to income ratio improved from 39.9 per cent in 2013 to 36.7 per cent in 2014.
The DIB saw strong growth in earning assets across all business segments: net financing assets at AED 74 billion, up by more than 32 per cent compared to AED 56 billion at the end of 2013. Sukuk investments increased to AED 16.1 billion compared to AED 11.6 billion at the end of 2013, an increase of nearly 38 per cent. Meanwhile, the total assets rose by 9 per cent at AED 123.9 billion compared to AED 113.2 billion at the end of 2013.
The Customer deposits grew by 17 per cent to AED 92.3 billion at end 2014 from AED 79.0 billion at end of 2013, while low cost deposits continue to remain a significant chunk with a large and stable CASA book comprising 45 per cent of total deposit base.
On significantly enhancing value for shareholders, earnings per share increased from AED 0.38 in 2013 to AED 0.61 in 2014. Return on assets improved by 74 bps from 1.62 per cent in 2013 to 2.36 per cent in 2014. Return on equity improved by 410 bps from 13.8 per cent in 2013 to 17.9 per cent in 2014.
DIB Board of Directors recommended the distribution of a cash dividend of 40 per cent, subject to general assembly approval.
Total revenue for full year 2014 increased to AED 6,368 million from AED 5,288 million in 2013, an increase of 20.4 per cent. The increase is mainly due to significant growth in core business related financing activities across both wholesale and consumer segments.
Net revenue for the period ended 2014 amounted to AED 5,569 million, an increase of 31.5 per cent compared with AED 4.2 billion in the same period of 2013. The increase in net revenue is mainly due to growth in core business coupled with savings achieved due to early settlement of high cost funding using bank's surplus liquidity.
With significant increase in net revenue and improved asset quality leading to declining impairment charges, net profit for the year ended 2014, increased to AED 2,804 million from AED 1,718 million in 2013, an increase by 63 per cent.
On his part, Dubai Islamic Bank Managing Director, Abdulla Al Hamli, said, "The strong positive results for the year 2014 is a testament to the bank's capabilities in the current macro-economic and business landscape. Throughout the year, DIB has continued to progress in the industry through launching award winning products and services focused on benefitting our customers."
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