2013 profit of AED 1.72 billion, an increase of 42 per cent compared to AED 1.21 billion for 2012. Operating profit before impairment stood at AED 2.55 billion, up ten per cent from AED 2.32 billion. Net operating revenue increased to AED 4.23 billion (seven per cent) from AED 3.94 billion for 2012. Total income remained steady at AED 5.28 billion despite low financing rate environment and deliberate run-offs in the legacy commercial real estate portfolio. This was largely due to the rising client activities and credit growth in consumer business and other sectors leading to higher funded and transactional income. Net operating revenue for the year ended December 31, 2013 amounted to AED 4.23 billion, an increase of seven per cent compared with AED 3.94 billion during the year 2012, which, combined with optimum cost management translated into a 10 per cent growth in operating profit before impairment charges in 2013. Operating expenses increased by 4.3 per cent to AED 1.69 billion for the year ended December 31, 2013 from AED 1.62 billion during 2012 due to increase in staff and operating costs in line with expansion of infrastructure and distribution network. However, the cost to income ratio improved to 39.9 per cent from 41.1 per cent in 2012 due to efficient cost management approach and effective utilization of resources. With continued increase in net operating revenue, improved asset quality and declining impairment charges, net profit for the year ended in December 31, 2013 increased by 42 per cent to AED 1.7 billion from AED 1.2 billion during 2012. Financing assets and Sukuk grew to AED 72.3 billion at 31 December 2013 from AED 69.9 billion at December 31, 2012 , an increase of 3.4 per cent (including impact of legacy real estate run-offs as part of de-risking balance sheet). Consumer Banking assets continue to rise during 2013 despite tighter credit policies and stiff competition. Although Corporate Banking exposure grew as well, the impact of growth in the portfolio, however, was partly offset by the run off of commercial real estate exposures which decreased to 26 per cent of the total financing book compared with 29 per cent in 2012 on account of a focused strategy to reduce the same over the last few years. Customers' deposits as of December 31, 2013 increased by 18.6 per cent to AED 79.1 billion from AED 66.7 billion as of December 31, 2012 with a rise in current and savings account (CASA) of 15.4 per cent. The CASA book continues to represent significant part of deposits at 42.4 per cent. The substantial increase in customers' deposits reduced the financing (including Sukuk) to deposits ratio from 99 per cent as of December 31, 2012 to 86 per cent as of December 31, 2013 , a decrease by 13 per cent. Other investments have performed significantly better than last year in line with improved GCC equities market resulting in an upside in other comprehensive income reserves and shareholders' equity. An increase of AED 275 million is recognized in the shareholders' equity compared with AED 12 million in 2012. His Excellency Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler's Court of Dubai and Chairman of Dubai Islamic Bank , said: "On the back of improved market conditions and a focused strategy over the past few years, DIB has posted a strong performance in 2013 with solid financial results. The recent EXPO 2020 win will provide a significant economic boost to all sectors across Dubai and the UAE and given the recent results, DIB is better positioned than ever to take advantage of the current positive market trends and to capitalize on the robust growth platform that the bank and its management has established in 2013." "I have always been a strong believer in the unique proposition that Dubai and the UAE offer to the local, regional and global players", said Dr. Adnan Chilwan , Chief Executive Officer, Dubai Islamic Bank : "On the strength of our beliefs, we implemented a focused consolidation strategy during the crisis years which has allowed us to de-risk and strengthen our balance sheet, improve asset quality, build a cushion against unforeseen events, establish a strong capital position and refocus our efforts on the core business while maintaining ample liquidity. These efforts have yielded strong synergies within the organization which is now comfortably poised to take advantage of the opportunities in the market today and in the foreseeable future."
Most Popular Stories
- Obama Administration Releases Proposal to Regulate For-Profit Colleges
- Some California Cities Seeking Water Independence
- FDIC Files Lawsuit on Behalf of Banks Allegedly Hurt by Libor Scandal
- Apple, HP, Intel May Take a Hit from Slowdown in Smartphone Sales Growth
- SoCalGas Reaches Record Spend on Diversity Suppliers
- Motley Crue's Nikki Sixx Marries Model Courtney Bingham
- Chinese e-Commerce Giant Alibaba Gears for IPO in U.S.
- Will Missing Malaysian Jet Prompt Aviation System Change?
- Obama Seeks to Stay Neutral in CIA-Senate Conflict
- GM Recall Poses First Major Test for New CEO