In the second quarter of 2014, the bank's net profits were up 60.9 per cent at 700.44 million compared to 436.97 million in the same quarter last year.
Total revenue increased by 12.6 per cent to Dh3 billion in the first half of from Dh2.71 billion in the same period last year. Net revenue increased by 26 per cent to Dh2.65 billion from Dh2.11 billion in the same period last year.
Net funded income saw an increase of 20 per cent to Dh1.68 billion while fees and commission income grew by 34 per cent to Dh581 million in the first half of this year of 2014 compared to the same period last year.
"The bank is well on its way to posting a strong performance in 2014 with consistent and robust first half results underlying the continuously unfolding potential of the unique proposition that the franchise represents," said
DIB's total assets were up 9 per cent to Dh123.2 billion at
"The bank's first half performance is a solid reflection of the work undertaken towards the end of last year to establish the growth strategy," said
Customer deposits up by 20 per cent to Dh94.8 billion in the first half with Financing to deposit ratio at 70 per cent. Non-performing loans continued to decline resulting in reduction in impairment losses from Dh545 million in the fist the half of 2013 to Dh355 million at the close of the first half of this year. The bank witnessed continued improvement in asset quality with increase in provision coverage. NPLs saw a consistent decline with NPL ratio improving to 9.3 per cent in the first six months of this year compared to 11.1 per cent at the end of 2013.
"With 81 per cent growth in first half profits and similar strong performances across other key metrics, we feel that we have done justice to the confidence and faith placed in DIB by the market," said
DIB maintained strong capital adequacy at 16.4 per cent compared with 18.2 per cent at year end 2013. The decline on capital adequacy is mainly on account of growth in financing assets and sukuk coupled with change in regulations to maintain higher capital requirement on market and operational risks.
With strong growth in profitability, key performance ratios improved in in the first half of this year compared to the same period last year as return on asset improved form 1.4 per cent to 2.2 per cent, return on equity improved from 12.4 per cent to 17.8 per cent and a decline in cost to income ration from 39 per cent to 35.9 per cent.
DIB which announced expansion into new international markets earlier this year said its plans are on track. "The bank's expansion plans go well beyond the established, and growing local franchise and we hope to have the Indonesian and Kenyan operations ready for launch this year," said Chilwan.
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