DUBAI ISLAMIC BANK PAKISTAN LIMITED

S.KAMAL HAYDER KAZMI,
(feedback@pgeconomist.com)
Research Analyst
, PAGE
Jan 3 - 9, 2011

Dubai Islamic Bank Pakistan Limited (DIBPL) commenced operations in 2006. Since then, DIBPL has undertaken major initiatives to expand its branch network across the country. Under its consumer banking division, the bank is offering state-of-the-art Shariah compliant products that effectively compete with those being offered in the market by conventional banks. It has also expertise in providing retail, private, small and medium enterprises, corporate, investment banking and advisory services.

FINANCIAL PERFORMANCE (RS IN 000)

INDICATORS SEP 30, 2010 (UNAUDITED) DEC 31, 2009 (AUDITED)
Assets 40,423,733 35,368,894
Liabilities 34,369,910 29,328,629
Investment 3,000,542 2,822,723
Deposits 31,562,403 27,980,906
Basic and diluted (loss) per share (Rs) 0.02 0.33

The bank launched Pakistan's first Islamic visa debit card and introduced financial products covering home financing, auto financing, and depository products.

DIBPL has also introduced priority banking and internet banking, both of which are being recognized as benchmark products in their respective categories. Besides regular banking services, the bank is committed to bring foreign investment to the country. DIBPL's corporate wing has actively pursued foreign investors and convinced world renowned giants from the GCC to be part of Pakistan's economy.

DIBPL is 100 per cent owned by Dubai Islamic Bank PJSC (Public Joint Stock Company) and its nominated shareholders. The parent company is a listed company in Dubai.

DIBPL: HISTORICAL RATE SHEET IN 2010 (%)

PRODUCT / TIERS
SPECIAL SAVINGS
JUN JUL AUG SEP OCT NOV
Less than Rs500k 8.01 8.00 8.01 8.00 8.01 8.00
Rs500k to Rs999k 8.02 8.01 8.02 8.01 8.02 8.01
Rs1 million to Rs4.99 million 8.03 8.02 8.03 8.02 8.03 8.02
Rs5 million to Rs9.99 million 8.04 8.03 8.04 8.03 8.04 8.03
Rs10 million to Rs24.99 million 8.05 8.04 8.05 8.04 8.05 8.04
Rs25 million to Rs49.99 million 8.06 8.05 8.06 8.05 8.06 8.05
Rs50 million to Rs99.99 million 8.07 8.06 8.07 8.06 8.07 8.06
Rs100 million to Rs249.99 million 8.08 8.07 8.08 8.07 8.08 8.07
Rs250 million to Rs499.99 million 8.09 8.08 8.09 - - 8.08

The world of finance belongs to those who shape it. DIB has taken a leading role in shaping the dramatic transformation that UAE has experienced in the last two decades. Now, with the same vigor, the bank comes to assist businesses in Pakistan.

FINANCIAL PERFORMANCE

During the period under review, the net assets of the bank were Rs6,053,823 million as compared to Rs6,040,265 million in Dec 31, 2009. During the nine months, the bank's profit before tax (PBT) was Rs29,379 million (EPS: Rs0.33). However, the bank incurred loss after tax of Rs13,558 million in nine months ended September 30, 2010.

BUSINESS FINANCE

Dubai Islamic Business Finance is a Shariah compliant term finance facility which provides a complete solution for fulfilling the financial needs of customer's business. Using the Shirkatul Melk cum Ijara model, DIBPL enters into a Shirkatul Melk relationship with customers by purchasing an undivided share of customerís residential property. This product is available for new as well as those who already have a business finance facility from another bank and wish to bank the Islamic Way.

SAVING ACCOUNTS

Dubai Islamic Savings Account is a great investment option for depositors who wish to earn Halal returns on their savings. That's not all, it allows customers the flexibility to withdrawn their funds whenever required. By investing in the Dubai Islamic Savings Account, the depositor authorizes DIBPL to invest his/her funds on the basis of unrestricted Mudaraba contract according to the principles of Sharia. DIBPL invests these funds in its Common Mudaraba Pool with other deposits and the shareholders' equity. The profit on the Common Mudaraba Pool is distributed amongst the shareholders' and depositors on the basis of agreed upon weightages which take into consideration the tenor, amount of deposit and profit payment frequency of the account.

FIXED DEPOSIT ACCOUNT

Dubai Islamic Fixed Deposit Account offers the ideal mix of long and short term benefits to depositors seeking attractive and Halal returns on their savings. With a history of high profit payouts, Dubai Islamic Fixed Deposit Account is an excellent investment vehicle for depositors with excess funds.

AUTO FINANCE

Dubai Islamic Auto Finance offers a world class auto finance facility that enables customers to get a car quickly, conveniently and in a fully Sharia compliant manner.

CONCLUSION

The financial sector is facing its lows but still better than other neighboring countries owing to regulations and the role of SBP to take timely corrective measures in the face of global financial crisis. Despite the economic issues in the country, DIBPL is striving to maintain its superior market position as it continues to improve its extensive branch network through upgrades as well as product innovation.