Dubai Islamic Bank net profit up 11.2 pct FY 2017

Dubai Islamic Bank (DIB) reported an 11.21 percent rise in net profit to reach 4.5 billion dirhams ($1.23 billion) for the full year 2017, according to Salaam Gateway calculation.

The United Arab Emirates’ biggest Shariah-compliant bank by assets posted net income (less depositors' and sukuk holders' share of profit) of 7.69 billion dirhams for 2017.

Net income grew 13.7 percent year-on-year, led by a rise of 19.53 percent in Islamic financing and investing transactions. 

Other income grew 117.67 percent. The ‘other income’ category normally includes realised gains on disposal of investments in sukuk, gains on disposal of associates and joint ventures, and services income.

Growth in these areas lifted net profit, which was hit by a 110.2 percent rise in impairment charges to 823.5 million dirhams from 391.8 million dirhams in 2016.

PROFITABILITY

DIB's 11.21 percent jump in net profit represented an upward growth from the 5.49 percent it posted in 2016. 

However, return on assets (ROA) nudged down to 2.34 percent in 2017 from 2.43 percent in the previous year, according to DIB investor presentation documents.

ROA measures how efficient the business is at using its assets to generate profit. Expressed as a percentage, the higher the ROA the better, indicating that the company is earning more from its assets.

Similarly, return on equity (ROE) measures how good the business is at using its equity to generate profit. 

DIB's ROE improved from 17.8 percent in 2016 to 18.7 percent last year. 

Dubai Islamic Bank's consolidated primary financial statements for full year 2017 can be found HERE. 

($1 = 3.6726 dirhams)