Dubai's Islamic Bank (DIB), the world's largest Islamic bank and the largest Islamic bank in the UAE with funds for the year ending December 31, 2018, has net profit of 5 billion AED, an increase of 11% compared to 4.5 billions of AEDs in 2017. This significant increase in profitability is due to the increase in revenues as a result of the strengthening of the core business, as well as improved cost management.
Total revenue rose to 11.73 billion, an increase of 15 percent compared to $ 10.19 billion in 2017. Net operating income rose to 8.2 billion dollars, an increase of 7 percent from 7.68 billion in 2017. Operating costs dropped to 2.32 billion dirhams, 33 billion in 2017. Net operating income before impairment provision increased by 10% over a period of one year to reach 5.88 billion. The cost of income ratio for 2018 is 28.3%, compared to 30.4% at the end of 2017.
Net financing and sukuk investments increased by 175.9 billion AED, an increase of 11.8% compared to 157.4 billion at the end of 2017. The total assets reached 223.7 billion, an increase of 7.9% compared to 207.7 billion at the end of 2017. Unfinished financing remained stable at 3.4%. The rate of coverage of the provisions was 112%. Total coverage, including guarantees with a reduced value of 150%.
Customer deposits rose 5.8% to 155.7 billion dinars compared to 147.2 billion dinars at the end of 2017. Deposits in the current account and savings accounts rose to $ 54 billion for the entire 2018 year, despite the high profit margin.
The ratio of deposits financing reached 93%. The capital adequacy ratio is 17.5%, compared with the minimum requirement of 12.75%. The Tier 1 equity ratio is 12.4% compared to the minimum requirement of 9.25%, which provides a great growth within the new Basel III standards. The return on assets was 2.32%, and the return on equity was 18.1%, within the trend.
The Board of Directors recommends 35% cash dividend in accordance with the guidelines of the Central Bank of the UAE and subject to approval by the Annual Meeting.
Mohamed Al-Shaibani, director of the Governing Council and chairman of the Dubai Islamic Bank, said: "Sharia-based banking is growing rapidly in all markets. As one of the two largest Islamic banks in the world, In this regard.
We will continue to promote the popularity and spread of Islamic banking, educate the market for its merits, and remove the prevailing feeling that sharia-based banking is limited to Muslims. "As part of our commitment to the development of Islamic capital markets, the Bank participated and managed with syndicated and co-financed contracts worth around $ 23 billion. Sukku's investment in the bank increased to 31 billion AED.
He noted that the United Arab Emirates continue to follow the path it has set for achieving sustainable development, following up new reforms and government initiatives aimed at diversifying sources of revenue, with increased spending in key sectors. Faced with unprecedented global challenges, the United Arab Emirates has maintained its resilience and resilience to creating new growth opportunities in many sectors, including infrastructure, finance, business, health, hospitality, tourism, aviation, transport and scientific research.
He underscored the continued growth of the United Arab Emirates economy and its ability to attract international investors and entrepreneurs to drive us to success, while continuing to develop the bank and the Islamic finance sector and raise them to higher levels in the coming years. We remain confident that the bank will benefit from new reforms, increased government spending and development trends in key sectors.
Abdullah Al Hamli, Managing Director of Dubai Islamic Bank, said: "We are proud of our contribution to the success of the United Arab Emirates economy. Last year we saw our activity on the capital markets. At the beginning of 2018, we managed to issue a succus of 1 billion dollars with a maturity of five years. This deal again opened up regional financial markets and market markets for creditors.
In the second quarter, the issue of subscription rights, which came to strengthen the first part of the capital, was a high demand, where the IPO exceeded the required limit by about 3 times. These two agreements clearly reflect the continued strong demand for bonds of the Dubai Islamic Bank (DIB), as well as the trust of global investors in the largest Islamic bank in the UAE.
He said Mr. Adnan Shalvan, Chief Executive Officer of the Dubai Islamic Bank, said: "In 2018, the Dubai Bank of Excellence's Excellence and the success and growth of the Dubai Islamic Bank has enabled us to overcome market expectations by gaining recognition and recognition from the sector, winning many prestigious awards and continuing our promises to our customers. And we intend to continue to strengthen the silence on the local and global levels. What makes us very proud is that the market is now considered a benchmark for performance in the banking sector as a whole , not just in Islamic finance.
A net profit of 5 billion AED clearly points to our success in implementing our sustainable and sustainable strategy. The focus on profitability remains a key driver of the Bank's growth agenda, which is clearly reflected in our strong margin of 3.14%, one of the best in the market. With our ability to innovate beyond the dynamic market conditions, we are confident that we will continue to work well and we will achieve a significant market share of around 10%.
"Dubai has strengthened its position as a leading destination for Islamic finance and global capital for the Islamic economy. The application of new economic and banking systems, such as Basel 3 and IFRS 9, as well as value added tax, has returned to financial standards on the market and strengthened the economy in the UAE.
"We continue to focus on achieving returns, with a strong return on assets (2.32%) and return on equity (18.1%), in line with our trend for the year. Our growth in the coming years will be driven by the digital transformation, while the market continues to change. After anticipating this revolution, we began to change our operations and systems for many years, and 2019 will be an unprecedented phase for the Bank and its customers.
Stations in the fourth quarter
The Bank continued to consolidate its position as the market leader for Islamic Finance and Capital Markets with a combined value of over $ 20 billion of transactions in 2018. The bank was also designated to participate in more than 30 joint financial agreements and issuance of sukuk for supra-national companies, sovereign and semi-trust funds. At the end of the year, the Bank has an important position as the main regulator of the Middle East for international instruments and co-financing transactions in region of EMEA. K.
As part of the ongoing initiatives of the Bank for providing innovative digital solutions for its customers and support to the Government of Smart Initiative in Dubai, the Bank has successfully launched "Virtual Accounts Solutions" – a reliable and urgent collection system for online claims and settlements.
The Retail Retail segment continues to strengthen its product portfolio with the launch of a refinancing product for cars. The bank's users can now take advantage of a larger banking network after adding 41 new ATMs, cash deposits and checks in 2018.
The year 2018 witnessed significant upgrades and upgrades to the digital capabilities of the bank, with the launch of the new mobile banking application, a new online banking platform that offers more than 110 services and the launch of DIB Chat Bot. With the features of artificial intelligence, allows them to respond to many customer demands and provide support for them on products and transactions. The bank also launched a billing service on its cards, which enables mobile payment via mobile phone.