1. Assembly approves conversion of AED 3.75 billion deposit into Tier 2 capital of DIB
2. Assembly approves increase of DIB’s capital by AED 3 billion over a five-year period
Following the conclusion of its Extraordinary General Meeting (EGM), which was held today, Dubai Islamic Bank (DIB) announced that the assembly has approved the increase of the bank’s capital by AED 3 billion over a five-year period. The assembly has delegated the Board of Directors to implement this resolution.
The conversion of an AED 3.75 billion deposit granted to DIB by the Ministry of Finance into Tier 2 capital of the bank, pursuant to terms and conditions proposed by the Ministry of Finance, was approved at the EGM. The amendment of article 14 of the Articles of Association of the bank as a result of the capital increase was also approved at the EGM.
“By approving the capital increase, members of the assembly have demonstrated their support for DIB’s expansion plan aimed at protecting the lending position of the bank during the current global financial crisis. We look forward to their continued support in 2009 and in the years to come,” said His Excellency Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank.â€
Chairing the EGM, Sheikh Khaled Bin Zayed Al Nehayan, Vice Chairman of Dubai Islamic Bank, said: “The bank will sustain its commitment to contributing to the ongoing growth, stability and diversification of the UAE and all the markets we serve. Further, the increase of the bank’s capital will provide additional liquidity to the financial operations carried out by the bank, thereby strengthening the UAE economy.â€
DIB reported AED 1.73 billion in net profit for 2008, a marginal decline compared to AED 1.88 billion in 2007, excluding an extraordinary gain on transfer from a DIB subsidiary. The distribution of a cash dividend of 25 per cent and bonus shares of five per cent for the year 2008 was approved at the bank’s AGM.
DIB will continue to build upon its many achievements in 2008, including the launch of its legal subsidiary, Dar Al Sharia Legal & Financial Consultancy LLC; a new joint venture with Jordan Dubai Capital and Dubai International Capital, via a strategic investment in Industrial Development Bank, which is being converted into Jordan Dubai Islamic Bank.
The bank’s current growth strategy – with a renewed focus on its already robust retail operations – will deliver significant results. By the end of this year, the bank expects to record a 15 per cent increase in its customer base, reaching some 900,000 customers, while the bank’s retail assets business will grow by approximately 20 per cent.
About DIB
Dubai Islamic Bank is a Sharia-compliant financial institution. As such, please refrain from using any of the following terms in reference to the bank and its activities:
Loan
Lender / Lending / Lend
Borrower / Borrowing / Borrow
Credit facility
Advance
Interest
About Dubai Islamic Bank:
Dubai Islamic Bank (DIB), established in 1975, is the first Islamic bank to have incorporated the principles of Islam in all its practices. DIB is a public joint stock company and its share is quoted on the Dubai Financial Market. The bank enjoys a reputation as a leader and innovator in maintaining the quality, flexibility and accessibility of its products and services. In a very short space of time it has created market leading services and products that are setting benchmarks for the rest of the sector.
DIB set a world record by raising a US$3.52 billion Sukuk for the Nakheel Group. This Sukuk adopted an innovative structure never used before in Islamic or conventional banking history.
The bank has been proactive in creating partnerships and alliances at both the local and international level. DIB has adopted an aggressive expansion strategy, which started with the establishment of DIB Pakistan Limited, a wholly owned subsidiary of DIB. DIB opened its first representative office in Turkey to enhance its access to that market. DIB has also acquired a stake in Al Khartoum Bank and a stake in Emirates and Sudan Bank (ESB). These steps mark DIB’s ambitious plans to roll out its operations into regional and international markets as part of its overall strategic plan.
DIB has won the respect of its peers around the world. The bank was recently named by Islamic Finance News the UAE’s Best Islamic Bank. DIB has also received many awards from international organizations, such as the prestigious “Bank of the Year – UAE†award from The Banker magazine and additional accolades from Euromoney.
