ID :
72207
Sun, 07/26/2009 - 16:04
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Shortlink :
https://oananews.org//node/72207
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Dubai Islamic Bank reports net profit of Dh820 million in first half of 2009
Dubai, July 26, 2009 (WAM) - Dubai Islamic Bank (DIB) announced yesterday its financial results for the first half of this financial year ending 30 June 2009, demonstrating the Bank's continued profitable operations despite extremely challenging conditions.
During the second quarter of 2009, the Bank's net profit reached Dh450 million, a rise of 22 percent compared to Dh370 million during the first quarter of the year. The Bank has made impairment provisions of Dh135 million for the same period. The Bank's total impairment provision for first half of 2009 now stands at Dh239 million. This reflects a prudent and conservative approach during a period of marked global financial instability.
The Bank's total assets as on 30 June 2009, stood at Dh87.8 billion, up 3 percent compared to Dh85.0 billion at 31 December 2008. Customer deposits increased 8 percent to reach Dh71.5 billion at June 2009, compared to Dh66.4 billion at 31 December 2008, reflecting the strong loyalty DIB enjoys amongst its customers.
In the first half of 2009, DIB's investing and financing assets reached Dh50.7 billion compared to Dh52.6 billion at 31 December 2008. The Bank's financing-to-deposit ratio stood at 71 percent as of 30 June 2009. The improved ratio reflects the Bank's conservative credit policy as well as a strong liquidity position, which will enable DIB to expand its credit portfolio when the economy recovers.
The second quarter of 2009 was marked with significant developments at DIB. The Bank launched a one-year Islamic Certificate linked to the Crescent Commodity Twister Strategy developed by ABN AMRO Bank. This US dollar-denominated certificate, offers investors ideal exposure to the global commodities market, and seeks to generate 96 per cent capital protection upon maturity. Jordan Dubai Islamic Bank received a preliminary banking licence by the Central Bank of Jordan to operate as an Islamic financial institution, with a share capital of US$100 million.
During the current quarter, DIB also bought back its sukuk amounting to US$ 83 million through a $200 million cash tender offer to its sukuk holders, which was announced in May 2009. The Bank purchased the trust certificates at 88 per cent of the face value. Through this transaction, DIB has become the first Islamic bank to buy back its outstanding trust certificates through a cash tender offer.
During the second quarter of 2009, the Bank's net profit reached Dh450 million, a rise of 22 percent compared to Dh370 million during the first quarter of the year. The Bank has made impairment provisions of Dh135 million for the same period. The Bank's total impairment provision for first half of 2009 now stands at Dh239 million. This reflects a prudent and conservative approach during a period of marked global financial instability.
The Bank's total assets as on 30 June 2009, stood at Dh87.8 billion, up 3 percent compared to Dh85.0 billion at 31 December 2008. Customer deposits increased 8 percent to reach Dh71.5 billion at June 2009, compared to Dh66.4 billion at 31 December 2008, reflecting the strong loyalty DIB enjoys amongst its customers.
In the first half of 2009, DIB's investing and financing assets reached Dh50.7 billion compared to Dh52.6 billion at 31 December 2008. The Bank's financing-to-deposit ratio stood at 71 percent as of 30 June 2009. The improved ratio reflects the Bank's conservative credit policy as well as a strong liquidity position, which will enable DIB to expand its credit portfolio when the economy recovers.
The second quarter of 2009 was marked with significant developments at DIB. The Bank launched a one-year Islamic Certificate linked to the Crescent Commodity Twister Strategy developed by ABN AMRO Bank. This US dollar-denominated certificate, offers investors ideal exposure to the global commodities market, and seeks to generate 96 per cent capital protection upon maturity. Jordan Dubai Islamic Bank received a preliminary banking licence by the Central Bank of Jordan to operate as an Islamic financial institution, with a share capital of US$100 million.
During the current quarter, DIB also bought back its sukuk amounting to US$ 83 million through a $200 million cash tender offer to its sukuk holders, which was announced in May 2009. The Bank purchased the trust certificates at 88 per cent of the face value. Through this transaction, DIB has become the first Islamic bank to buy back its outstanding trust certificates through a cash tender offer.
