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Dubai Islamic Bank Pakistan posts notable rise in PAT in Sept-2019

During the period ended September 30, 2019, Dubai Islamic Bank Pakistan Limited (DIBPL) recorded a notable 24 percent rise in profit after tax (PAT). Profit before taxation (PBT) was also registered at Rs. 3.99 billion, an impressive rise of 31 percent over the same period previous year.

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 sustained its position as an innovative solution provider to all the financial needs of its customers, in accordance to Shariah. DIBPL was incorporated in Pakistan as an unlisted public limited company in May 2005 under the Companies Ordinance (1984) to carry out the business of an Islamic Commercial Bank in accordance with the principles of Islamic Shariah. Presently, DIBPL management has taken initiatives towards bringing excellence in its organizational operations. DIBPL has initiated launching of New Products, New Branches, Learning & Development Interventions and Continuous Improvement in Systems and Processes. DIBPL continues to reaffirm its commitment to Pakistan with new branches and absolutely Halal & Shariah compliant new products and services.

Financial Position Of DIBPL (Rs in Mn)
Details30-Sep-1931-Dec-18Growth (%)
Investments48,97745,8517.0
Total assets251,150231,8238.0
Net equity19,58716,75017.0
Number of branches200200
Source: DIBPL

The Management of the bank recorded in the financial report that the earnings per share (EPS) for the period under review were recorded at Rs. 1.97 as compared to Rs. 1.59 for the same period previous year. Aggregate net revenues for the current nine months are reported at Rs.9.55 billion, enhancing by 27 percent from Rs.7.51 billion for the same period previous year. The rise in net profit/return contributed by higher spreads in line with policy rate raises also higher average volumes. Moreover, other income also increased by an impressive 31 percent during the period under review on account of gain on sale of securities and foreign exchange revenues. Moreover the operating expenses were increased by 11 percent chiefly reflecting the impact of Rupee devaluation and inflationary upsurge, the cost to income ratio enhanced from 60 percent to 53 percent over the same period previous year.

 

The financial experts of the bank also recorded in the bank’s financial report that DIBPL also increased its Balance Sheet footing by 17 percent by robust growth in deposits which were deployed in financing portfolio which increased by 8 percent and fresh investment were made in SLR eligible Energy Sukuk. Consequently, advances to deposits ratio reached at 81 percent at period end.

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In the backdrop of challenging economic conditions and high policy rate, the financing portfolio has come under stress as reflected in the rise of Non Performing portfolio of the banking sector, and thus requires close monitoring. The Bank officials also recorded that the management takes on the role of both an investor and a facilitator to serve as a catalyst for more FDI in Pakistan. Pakistan exchequer has benefitted from over US $130 million of FDI from DIBPL alone. DIBPL has been very active in attracting FDI from the UAE corridor. In fact, the Bank is already working closely with a number of UAE based large business corporations such as Dubai Ports, Nakheel LLC, and Emaar in identifying opportunities and channeling hard flows into the country. It is also recorded that DIBPL is the first Islamic Bank in Pakistan to be offering Priority & Platinum Banking and the most extensive & innovative portfolio of Alternate Distribution Channels (ADCs) which includes VISA ATM/Debit Card, Internet Banking, SMS Banking, Phone Banking, Mobile Internet Banking, Inter Bank Fund Transfer and over 186 ATMs across Pakistan. DIBPL is currently one of the most active players in the Consumer Autos and Home Finance industry with the combined portfolio standing way above PKR 10 Billion. DIBPL continues to strive and expand its sphere of World Class Banking expertise in Retail, Corporate, Trade and Investment Banking services across Pakistan.

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In last I would like to mention here, the Dubai Islamic Bank Pakistan Limited is cognizant of the fact that the operating environment would remain challenging in the medium term. It is also recorded that the Bank’s strategy would therefore have a strong focus on maintaining health of financing portfolio and to ensure sustainable revenue generation by booking high quality assets, generating low cost deposits and stringent cost control discipline.

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