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Following the conclusion of its Annual General Meeting (AGM), Dubai Islamic Bank (DIB) announced that the assembly has approved the distribution of a 45% cash dividend for 2015, a 12.5% increase from the previous year.
The assembly also approved the bank’s 2015 financial statements. For the 12 months ended December 31, 2015, DIB reported a net profit of AED 3.83 billion, a significant increase of 37 per cent compared to AED 2.80 billion in 2014. The assembly also reviewed the Fatwa and Sharia Supervisory Board Report, and reappointed KPMG as the bank’s external auditors.
In addition, the AGM has also ratified DIB’s capital increase by way of rights issue of 988,437,777 million new shares to raise the paid up capital from AED 3,953,751,107 to a maximum of AED 4,942,188,884. The rights will be offered either once or through a series of issuances after obtaining the required approval from relevant regulatory authorities.
Furthermore, authorisation was obtained on increasing the ceiling of non-convertible Shariah compliant hybrid tier 1 capital instruments by USD 750 million for the purpose of strengthening the Bank’s capital. This additional increase will take the total tier 1 capital from USD 2.0 billion to USD 2.75 billion.
Commenting on another 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: “2015 was a special year for DIB where the bank celebrated its 40th year anniversary whilst also recording the highest ever profit number in its history. On behalf of the board, we are very pleased to distribute 45% cash dividend to our shareholders for 2015 which is a 12.5% increase from the previous year. We would like to thank all our shareholders for their loyalty and confidence as we reiterate our commitment to support Dubai’s efforts to become the global capital of the Islamic economy”.
In line with its strategy of promoting Islamic banking across the world, DIB continued to enhance its existing franchise by growing within and outside the home country. Last year saw the bank receive regulatory approval to increase its shareholding in Bank Panin Syariah in Indonesia to nearly 40%. Its international franchise today spans key markets in the broader Middle East, Asia and Europe, and it is widely recognized as the torchbearer of Islamic Finance around the world.
DIB sustained its position as a premier financial institution within the global Islamic finance space leading and closing significant deals whilst also launching many new and innovative products during 2015. As the leader in arranging many key transactions, the bank played a critical role in helping Dubai become the global capital for sukuk last year. The bank also remains one of the most actively traded stocks on the DFM, reflecting strong investor interest and confidence in its underlying value. Meanwhile, DIB’s healthy financial position was 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.
“Dubai Islamic Bank has delivered another remarkable performance in 2015 as the bank joined the ‘Billion Dollar Profit Club’,” said Dr. Adnan Chilwan, Group CEO, DIB. “Our focus on growing core business and abstaining from non-core activities resulted in a market leading performance despite the macro-economic environment and volatile and challenging conditions. Today, we have a solid platform that progressively creates growth opportunities both within and outside the organization. Going into 2016, our focus remains unchanged with core businesses of consumer and wholesale being the main drivers of growth. As the franchise continues to progress steadily in pushing the Islamic finance agenda and gaining market share, I am confident that DIB will be able maintain its strong performance and undisputed leadership in the industry in the years to come.”
Indicative of its recognition in the industry, the bank has received numerous local and international accolades last year, ranging from “Best Islamic Bank” to “Best Retail Bank Middle East”, and “Best Corporate Bank”, “Most Established Islamic Bank in the UAE” to name few, as well as being recognised for its efforts in contributing to the social welfare and human capital development in the country. DIB was recently awarded for its remarkable role to support the Government Nationalisation efforts.