Dubai Islamic Bank to distribute 40% cash dividend for 2014

Record dividend approved at Bank’s Annual General Meeting

Following the conclusion of its Annual General Meeting (AGM), Dubai Islamic Bank (DIB) announced that the assembly has approved the distribution of a 40% cash dividend for 2014, a 60% increase from the previous year.

The assembly also approved the bank’s 2014 financial statements. For the 12 months ended December 31, 2014, DIB reported a net profit of AED 2.8 billion, a significant increase of 63 per cent compared to AED 1.70 billion in 2013. The assembly also reviewed the Fatwa and Sharia Supervisory Board Report, and reappointed KPMG as the bank’s external auditors.

Commenting on the successful financial year, His Excellency Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank, said: “2014 witnessed rapid growth across the bank, far ahead of the industry average, in spite of challenging market conditions. DIB continues to play a strategic role as a key contributor to Dubai’s long-term ambitions, in the Emirate’s vision of becoming the capital of the Islamic economy. The 2014 performance is yet another milestone in our impressive journey, and as 2015 marks the 40^th anniversary of the bank, we can look back with pride over the past four decades at all we have achieved, and the role we have played in spurring the rapid growth of Islamic finance in the UAE and across the world.”

Whist realizing its best ever performance in the bank’s rich history, DIB continued to build upon its existing franchise with expansion within and outside the home country. In May 2014, it completed a 24.9 per cent acquisition of Bank Panin Syariah in Indonesia and intends to enhance this stake to 40 per cent pending approvals from the regulator. The bank’s healthy financial position was also reiterated by Fitch Ratings, which reaffirmed the bank’s Long-term Issuer Default Rating at 'A' with a stable outlook with both Fitch and Moody’s maintaining the outlook and ratings on the bank.

Illustrating growing international interest in the brand, DIB raised its foreign ownership limit to 25% last year, following which the bank scrip was chosen to be included in the MSCI basket when the UAE was upgraded to ‘Emerging Market’ status. Local, regional and international analyst coverage and investor interest has grown significantly as the bank continues to be one of the most actively traded stocks on the DFM.

“The 2014 performance is not just a result of the growth strategy adopted for the year,” said Dr. Adnan Chilwan, CEO DIB, “it is an outcome of a focused and deliberate mission that we embarked upon five years ago. We planned for this to happen and the successful execution of the same has allowed us to be what we are today.”

“Our focus going forward remains unchanged,” he added. “Whist we continue to deepen our existing relationships, we will carry on making further inroads in the many new sectors and business segments that have given us a successful 2014. We will push to create new business opportunities though relentless advancements in technology. Our focus on innovation is squarely aimed towards unlocking new growth prospects, not just through enhancement and diversification of products and offerings, but also through defining a service level and customer experience seldom seen elsewhere. With improving macroeconomic sentiments, a well-funded and stable funding base, and a robust capital position, we are now well placed to forge ahead on this trajectory and deliver greater value to all our shareholders in the coming years.”

The bank grew its footprint locally by opening 4 new branches in 2014, bringing the DIB’s UAE-wide network to a total of 90 branches. Further in line with this focus on broadening its consumer franchise, DIB launched the “Smart Bank” initiative, which is aligned with Dubai’s “Smart City” agenda. By redefining and setting a new benchmark for delivering banking services to its customers through ground-breaking technology, DIB today provides one of the most seamless user experiences with rapid turnaround times in the industry.