DUBAI — Dubai Islamic Bank (DIB) announced yesterday its financial results for 2006, which show a robust and expanding business across its operations. The bank reported Dh1.56 billion in net profit for the year ended December 31, 2006, an increase of 47 per cent compared to Dh1.06 billion for the year ended December 31, 2005.
The results were announced following a meeting of the board of directors held yesterday. The board proposed a bonus share of 7 per cent and a cash dividend of 35 per cent.
The profit for 2006, including depositors' profits, stood at Dh3.3 billion, an increase of 65 per cent compared to Dh2 billion for the year ended on December 31, 2005.
Total assets in 2006 reached to Dh64.5 billion reporting an increase of 50 per cent compared to Dh43 billion in 2005.
Financing and investment operations also delivered strong growth, with total investment and financing assets including investments in sukuks stood at Dh38.8 billion, an increase of 28 per cent over last year.
Customer deposits also showed an aggressive growth of 43 per cent over last year reaching Dh47.7 billion in 2006.
For the fourth quarter of 2006, the bank reported net profit of Dh540 million, a rise of 114 per cent compared to Dh 252 million for the corresponding period in 2005.
Dr Mohammed Khalfan bin Kharbash, Minister of State for Financial and Industrial Affairs and Chairman of DIB, said: "2006 was a landmark year in Dubai Islamic Bank's history with immense contributions from all employees. DIB signals another year of excellence as it aggressively moves forward in the local, regional, and international arenas. The bank has expanded in the UAE and internationally, and has further strengthened its position as a leader in banking and financing activities," he added.
"The banks operations for 2006 were in line with the strategic objective and role set by DIB to support the national economic development, the prosperity of UAE and enhance UAE's position as an international business hub. This was all achieved through the financial solutions provided by DIB. These products and services have helped huge government organisations and semi-government entities as well as private organisations to benefit from such deals. Not only have these entities benefited from the financial solutions, but also from foreign investments channelled into the local market. Deals such as sukuks are testimony to DIB's efforts in providing innovating solutions in the market place," he added.
"DIB has joined hands with strategic partners to launch special purpose vehicles in the fields of investment, real estate development, advisory, private equity funds and others. These organisations offer services and products that cater to local and regional markets," he said.
Dr Kharbash noted: "DIB's achievements in 2006 include cementing our position as the world's premier Islamic finance house with a string of transactions, culminating in the world's biggest $3.52 billion sukuk for the Nakheel Group."
"The total sukuks raised by DIB amounted to more than $15 billion, an unprecedented amount in the history of Islamic Banking across the world. The figure accounts for almost 70 per cent of all Capital Market (sukuk and conventional bonds) funding for public sector entities in the Emirates in the last two years. These sukuks also contributed to promote and strengthen the position of Dubai International Financial Exchange (DIFX) as it accounts for more than 90 per cent of the total sukuks listed on DIFX," he added.
Dr Kharbash said: "At a retail level, our innovations led to products such as the Al Islami personal finance' and 'Al Islami Credit Cards."  
DIB's branch network has grown by 340 per cent since 2002, which makes it the fastest growing branch network in the UAE. DIB's branch network reached 40 branches in 2006. By the end of 2007 DIB's branch network will touch 52.
Dr Kharbash said: "DIB had a distinguished performance wherein the bank entered new markets on the regional and international scenes by opening new branches, representative offices and investing in leading companies and active sectors."