Islamic banks show off earings strength and asset quality
Dubai: In a new set of bank results announced on Sunday, the country’s two Islamic banks displayed their balance sheet strength and high profitability, reinforcing the robust health of the UAE’s banking sector.
Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE by total assets reported a net profit of Dh2.8 billion for 2014, up 63 per cent compared to Dh1.7 billion for 2013.
DIB’s net financing assets at Dh74 billion at the year-end 2014 was up by more than 32 per cent compared to Dh56 billion at the end of 2013.
The bank’s total assets were up by 9 per cent Dh123.9 billion at the year-end 2014 compared to Dh113.2 billion at the end of 2013.
“Despite the relatively subdued market, the bank has witnessed a 63 per cent hike in net profit and 32 per cent jump in financing book,” said Dr. Adnan Chilwan, CEO of DIB.
Abu Dhabi Islamic Bank (ADIB) Group’s net profit for 2014 increased by 20.7 per cent to Dh1.75 million compared to Dh1.45 billion in 2013. The bank’s net revenues for 2014 increased by 16.6 per cent to Dh4.58 billion compared to Dh3.93 billion in the same time period.
The bank’s customer financing assets increase by 18.2 per cent to Dh73 billion, while customer deposits increased by 12.3 per cent to Dh84.8 billion over the same period.
Abu Dhabi Commercial Bank (ADCB) reported a full year net profit of Dh4.2 billion, up 16 per cent compared to 2013. The bank’s total assets crossed Dh200 billion mark this year.
ADCB’s net loans and advances increased 7 per cent to Dh141billion in 2014 as customer deposits from increased 9 per cent to Dh126 billion. Bank’s Islamic banking business remained a prime driver of growth, with Islamic financing assets (gross) up 5 per cent and total Islamic deposits up 15 per cent over 2013.