(MENAFN- Khaleej Times) Dubai Islamic Bank, or DIB, on Sunday said its first-quarter net profit jumped 17 per cent to Dh301.7 million from Dh258.5 million in the same 2012 period.
The bank, which posted strong asset growth since December, said its customer deposits stood at Dh88.3 billion as of March 31, 2013 compared to Dh66.7 billion in the previous quarter, an increase of 32 per cent.
The bank's total assets in the first quarter of 2013 grew by 22 per cent to Dh120.6 billion from Dh98.7 billion.
The bank, the oldest and largest Shariah-compliant bank in the country, said its Tier 1 capital ratio strengthened significantly in the first quarter of the year to 17.7 per cent and the total capital adequacy improved from 17.4 per cent to reach 21.2 per cent in the first quarter.
"DIB's performance in the first quarter of 2013 reflects the robust health of the UAE economy and the positive outlook for the country's banking sector," said Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler's Court of Dubai and Chairman of Dubai Islamic Bank.
"With our long-term funding requirements secure, DIB is now clearly on a path of sustained growth and will continue to play a leading and active role in the ongoing development of the UAE economy," said Al Shaibani.
Earlier this month, DIB said it repaid Dh3.75 billion in government deposits to the UAE's Ministry of Finance it received during the financial crisis in 2008 as part of a broader plan to shore up the country's banking sector.
Earlier this year, DIB raised $1 billion through an Islamic bond to strengthen its capital ratios, which in part allowed it to repay the support funds. The issuance, which carried a profit rate of 6.25 per cent, represented the best yield ever achieved by a GCC bank on a public Tier 1 transaction and provided a significant boost to the bank's tier 1 Capital ratio. The issuance was extremely well received by investors across the globe, evidenced by the fact that it was oversubscribed 14 times, the bank said in a statement.
"Our performance in the first quarter was notable for simultaneously delivering strong profit growth while significantly improving our capital positions. As we look forward to the remainder of 2013, we will continue to develop and introduce innovative products and services to meet the needs of our large and loyal customer base," said Abdulla Al Hamli, Chief Executive Officer of Dubai Islamic Bank.
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