span>Full Year 2017 Results Highlights
Profitability remains on a robust northbound trajectory driven by core business growth and effective cost management
· Group Net Profit increased to AED 4,504million, up 11 per cent compared to AED 4,050million for 2016.
· Total income increased to AED 10,199million, up 18 per cent compared to AED 8,636million for 2016.
· Net Operating Revenue increased to AED 7,687million, up 14 per cent compared to AED 6,761million for 2016.
· Efficient and proactive cost management resulted in operating expenses remaining nearly flat at AED 2,336million compared to AED 2,297million for 2016.
· Net operating income before impairment charges grew by 20 per cent to AED 5,351million compared to AED 4,464million for 2016.
· Cost of credit risk reduced to 60bps compared to 80bps in 2016.
· Cost to income ratio declined to 30.4 per cent compared to 34 per cent at the end of 2016.
Financing continues to drive balance sheet growth as share of wallet rises to around nine per cent of the market
· Net financing assets rose to AED 133.3billion, up by 16 per cent, compared to AED 114.9billion at the end of 2016.
· Sukuk investments increased to AED 24billion, a growth of three per cent, compared to AED 23.4billion at the end of 2016.
· Total Assets stood at AED 207.3billion, an increase of 19 per cent, compared to AED 174.9billion at the end of 2016.
Asset quality improvement continues as the non-performing financing ratio drops to below guidance levels
· NPF ratio continues its downward trajectory improving to 3.41 per cent, compared to 3.9 per cent in 2016.
· Cash coverage ratio maintained at 118 per cent.
· Overall coverage including collateral at discounted value now stands at 157 per cent.
Liquidity impact despite market beating financing growth
· Customer deposits stood at AED 147.2billion compared to AED 122.4billion at the end of 2016, up by 20 per cent.
· CASA deposits increased by nearly 13 per cent to AED 53.6billion from AED 47.4billion as at end of 2016 leading to a robust 36 per cent constitution of the total deposit base.
· Financing to deposit ratio stood at just under 91 per cent, indicating a healthy liquidity position
· Focus on diversification and securing long term funding saw another successful senior Sukuk issuance of $1 billion during Q1 2017.
Robust capitalisation levels creating growth capacity
· Capital adequacy remained strong at 17.0 per cent, as against 12 per cent minimum required.
· Tier 1 CAR stood at 16.5 per cent under Basel II, against minimum requirement of eight per cent.
Quality growth in profitability continues to support shareholder returns
· Earnings per share stood at AED 0.78in2017.
· Return on equity stood at 18.7 per cent in 2017.
· Return on assets steady at 2.34 per cent in 2017.
“A double digit rise of 11 per cent in profitability is a clear indication of the focus on quality growth with Group Net Profit crossing AED 4.5 billion and this will remain a critical objective going into 2018 as well,” said Dubai Islamic Bank Group Chief Executive Officer, Dr. Adnan Chilwan.