Home / This Week / Cover Stories / Dubai Islamic Bank continues expanding its footprint in Pakistan

Dubai Islamic Bank continues expanding its footprint in Pakistan

Dubai Islamic Bank Pakistan Limited (DIBPL) is a wholly-owned subsidiary of Dubai Islamic Bank UAE (DIB). The parent company DIB is a listed company in Dubai. The Bank has maintained its position as an innovative solution provider to all the financial needs of its customers, in accordance to Shariah compliance.

Since its inception in 1975, Dubai Islamic Banking Group has established itself as the undisputed leader in its field, setting standards for others to follow as the trend towards Islamic banking gains momentum in the Arab world and internationally.

The group offers a wide range of pioneering products and operates in all sectors of the financial market, including corporate and retail lending, deposits, payment and account services, foreign exchange operations, cash handling services, investment banking and other ancillary services to corporate and retail customers.

Globally the Bank is established in the UAE since 1975 and has presence in Jordan, Turkey and Pakistan. In addition, it has strategic stakeholding in Sudan and Bosnia Herzegovina as well.

As a Minimum Capital Requirement (MCR) compliant Bank, the DIBPL enjoys a short-term credit rating of ‘A-1’ and long-term credit rating of ‘AA-’ with a “Stable” outlook by JCR-VIS, indicating the bank’s robust position in the industry.

The Bank continues to reaffirm its commitment to Pakistan with new branches and absolutely Halal & Shariah compliant new products and services. Enhancing its reputation built on the guiding principles of ethical and responsible modes of banking and finance, Dubai Islamic Bank Pakistan remains exceptionally well-placed to meet the banking challenges as it strives for excellence in the provision of Islamic Banking for today’s world.

With path-breaking vision and bold strategies, Dubai Islamic Bank Pakistan endeavors to enhance its status as an industry leader committed to the goal of providing World Class Banking.

With Group assets of US$50 billion, a market capitalization of around US$7.0 billion, and workforce of more than 8,000 employees within the group, the organization is fast being recognized as a formidable force in Islamic finance and one of the most progressive Islamic finance institutions in the world.

Currently, DIB has presence across all Emirates in the United Arab Emirates (UAE) with growing international operations in South Asia, Far East, Middle East, Europe and Africa. The Bank is offering state-of-the-art Shariah compliant products that effectively compete with those being offered in the market by conventional banks.

First quarter profit surges to $330million

Dubai Islamic Bank, the first Islamic bank in the world, has posted a net profit of Dh1.211 billion ($330 million) for the first quarter of 2018, up 16 per cent compared with Dh1.042 billion for the same period last year. Total income increased to Dh2.697 billion, up 13 percent compared with Dh2.378 billion for the same period in 2017, while net operating revenue increased to Dh1.971 billion, up 9 percent compared with Dh1.804 billion for the same period in 2017.

Mohammed Ibrahim Al Shaibani, director-general of The Ruler’s Court of Dubai and chairman of Dubai Islamic Bank, said: “The overall macroeconomic environment continues to recover, with bright prospects on the horizon for 2018, based on further improvement in global oil prices and pick up in investment activity, as a result of mega projects leading up to the Expo 2020.”

DIB carries on its growth aspirations in the coming years following recent approvals from our shareholders to increase its capital and deploying it towards growing and expanding the business franchise.

“The quarter saw improving financial metrics across the industry following the implementation of new economic and banking regulations such as Basel III, IFRS 9 as well as VAT as the market continues to strengthen its domestic policies,” he added.

Dubai Islamic Bank managing director, Abdulla Al Hamli, said: “Once again, the bank has given a robust performance across all major financial KPIs as the growth agenda continues.

The significant growth in profitability over the years has enabled the bank to continue to distribute strong dividends to shareholders whilst optimizing internal generation of capital.

As Islamic banking activities continuing to pick up pace in the country, DIB remains a key player in the financial sector with a growing market share year on year.

Dubai Islamic Bank Group chief executive officer, Dr Adnan Chilwan, said: “2018 is a critical year as it effectively marks the culmination of the 10-year master plan that has seen the bank transform into a financial powerhouse in the UAE banking space.”

Whilst it continues on expansionary agenda, this year is primarily about striking a balance between growth and profitability. The market beating growth over the last few years has been the result of an extremely pointed and comprehensive strategic agenda built around positioning the bank to take advantage of both visible and seemingly invisible market opportunities.

DIB records after-tax-profit of Rs1,602 million in Pakistan

The Board of Directors of Dubai Islamic Bank Pakistan Limited (DIBPL) in its meeting held in Karachi on January 29, 2018 approved the audited financial statements of the Bank for the year ended on December 31, 2017.

DIBPL has maintained its growth momentum during the year and recorded historic results for the year ended December 2017. Profit-before-tax increased to Rs2,564 million as compared to Rs1,371 million last year, a growth of 87 percent despite intense competition in the banking industry.

The Bank has increased its balance sheet footing through impressive growth in its investments and financing portfolio. The Bank has also recorded robust growth in deposits compared to last year. The Bank recorded Earnings per Share (EPS) of Rs. 1.41.

The major contributors were net spread earned, which grew by 26.62 percent while fee and commission income increased by 20.89 percent, compared to last year. This has been achieved through strong growth in commercial and consumer financing portfolio yielding higher returns, and further strengthening of non-funded income streams from trade finance, foreign exchange and corporate advisory services.

Another significant achievement is the reduction in the Bank’s ratio of non-performing financings to total financing (NPL ratio) that now stands at 1.9 percent, down from 2.52 percent in 2016 as a result of recoveries made by the Bank during 2017 which highlights quality of Bank’s portfolio.

Considering the sound performance indicators of the Bank, the JCR-VIS Credit Rating Company Limited has assigned the Bank medium to long-term rating to ‘AA-’ (AA minus) from ‘A+’ (A-Plus) and the short term rating as ‘A-1’ (A one) while the outlook has been assigned as “Stable.”

The Board recorded its appreciation to the CEO and the management team of DIBPL on the impressive results of the Bank.


Islamic car finance in Pakistan

Dubai Islamic Bank Pakistan commenced in 2006, is a renowned bank offering Islamic Banking in Pakistan. DIBP is known for offering banking based on a combination of Islamic traditions and latest technology.

Dubai Islamic Bank Car Finance is one of Shariah compliant product offered by the Bank. Dubai Islamic Car Finance scheme helps you in getting a vehicle in a completely sharia-compliant way. Dubai Islamic bank car finance offer is based on the Musharka-cum-Ijarah model.

Dubai Islamic Bank car finance offers guaranteed lowest insurance/Takaful rates compared to any other bank in Pakistan. DIBP all financed cars come with a tracking device.

In advance booking scenario, the Bank doesn’t charge monthly installments before delivery of the car. DIB holds eminent recognition in Islamic Banking and Islamic Car Financing, offering the best deal for financing with least Interest rates.

DIB, SAF to empower underprivileged communities in Pakistan

Dubai Islamic Bank (DIB) & Shahid Afridi Foundation (SAF) join hands to work towards empowering underprivileged communities across Pakistan. This MoU will help to facilitate in enhancing the reach to the deprived sectors of the society by providing basic necessities of life.

Dubai Islamic Bank Pakistan would support SAF’s mega projects from its charity fund and will facilitate in accepting the donations in SAF accounts in all its branches. SAF will provide assistance in the area of education, availability of clean drinking water and healthcare.

SAF has undertaken different initiatives in health, clean water and sports rehabilitation with a special focus on its education project. This partnership with Dubai Islamic Bank Pakistan would further assist SAF to resolve and empower the less privileged communities. SAF aims to uplift the underprivileged communities in Pakistan with the help of corporate community under their CSR initiatives.

Branchless banking by June

Dubai Islamic Bank Pakistan (DIBP), the wholly-owned subsidiary of UAE-based first Shariah-compliant financial institution across the world, announced that it would kick-start branchless banking by June 2018.

M-wallet services would help the bank accelerate its growth momentum and achieve the State Bank of Pakistan’s (SBP) target of increasing the market share of Islamic banks to 20 percent by 2020 from the current 14 percent in the country. Conventional banks enjoy rest of the market share.

Nine conventional banks and financial institutions are already offering branchless banking services in Pakistan in collaboration with mobile phone services firms and technology companies.

“We are hoping to launch our branchless banking platform in June,” Dubai Islamic Bank Pakistan Chief Executive Officer Junaid Ahmed said after signing an agreement with Chinese technology company, ZING Digital Commerce (technology partner of Shanghai F-Road, China), which is deploying the tech-based system at the bank.

The branchless banking platform would enable the bank accountholders to do financial transactions through their mobile phones, including the simple feature phones. This would enable people to pay for their groceries. “It would make transactions paperless,” he added. “This would largely support economic growth… bring-in [significant amount of] money into the banking system from out of the system at present.” “With this platform, DIB Pakistan will offer an array of products mainly to the unbanked population and in line with SBP’s strategy for financial inclusion,” he said.

According to the telecom regulator, Pakistan Telecommunication Authority, there are a total of 145 million active mobile phone connections in Pakistan. About 67 percent of them are using simple feature phones while the rest use smartphones.

According to the SBP, the number of branchless bank accounts stands at 27.32 million as on June 2017 including 13.15 million active accounts (who did at least one financial transaction in the prior 90 days). They did a total of 167.17 million transactions worth Rs746.56 billion during April-June 2017.

ZING Digital Commerce Founder and Chief Executive Officer Ghazanfar Ali Khan said, “We are bringing matured market experience into Pakistan. Pakistan has only 46 banks in total, while we are serving 1,300 banks in China.”

The central bank, commercial banks and other financial institutions all are making efforts to educate people about branchless banking and its benefits in daily life under the SBP National Inclusion Policy 2020, he said.

DIB & ZING digital commerce in accord

Dubai Islamic Bank Pakistan & ZING Digital Commerce signed an agreement for deployment of branchless banking platform. This agreement will pave the way for Digitization of Banking products to enable the Bank to offer variety of products to the unbanked and the under banked segments of the country.

With this agreement Dubai Islamic Bank will partner with ZING Digital Commerce who have developed a comprehensive Branchless Banking platform, in collaboration with its Chinese Technology Partner i.e. Shanghai F-Road.

This alliance shall fulfill DIBP’s vision to offer quality financial services at grass root level with convenience and reliability at customer’s door step.

CEO Dubai Islamic Bank Pakistan Mr. Junaid Ahmed said that “this agreement would trigger a start for Digitization of Banking Products to offer an array of products mainly to the unbanked population and in line with SBP’s strategy for Financial Inclusion. It is also to be highlighted that SBP has provided an enabling framework for the Bank’s to tap the huge potential of the unbanked economy which will be a major contributor for economic growth”.

Mr. Ghazanfar Ali Khan, Founder and CEO ZING Digital Commerce, added that ZING is working to sprout revolutionary Fintech solutions developed in collaboration with Chinese technology partner (Shanghai F-Road) in Pakistan. Shanghai F-Road Commercial Services Co, Ltd. is serving 1,300 + banks in 24 provinces of China.

With this solution, ZING Digital Commerce aims to gear up Dubai Islamic Bank Pakistan with seamless branchless banking platform. “We are honored to leverage our expertise in partnering with Dubai Islamic Bank for implementation of its Digital Banking roadmap”, ZING Founder and CEO said further.

Check Also

Kamyab Jawan key scheme for youth development

Kamyab Jawan: key scheme for youth development

The Government of Pakistan (GoP) has launched ‘Prime Minister’s Kamyab Jawan SME Lending Program’ aimed …

Leave a Reply