DUBAI ISLAMIC BANK PAKISTAN LIMITED
S.KAMAL HAYDER KAZMI,
Research Analyst, PAGE
Sep 10 - 16, 2012
Dubai Islamic Bank Pakistan Limited (DIBPL) is offering state-of-the-art Sharia compliant products that effectively compete with those being offered in the market by conventional banks. The Bank also has expertise in providing retail, private, small and medium enterprises, corporate, investment banking and advisory services. DIBPL commenced operations in 2006. Since then, DIBPL has undertaken major initiatives to expand its branch network across the country. 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 strives to bring to its customers, world class banking, the Islamic way. To ensure that every transaction complies with Islamic Law, the bank has in place a Fatwa & Sharia supervision board, comprising of scholars of the highest repute, with vast experience in the field of Islamic Jurisprudence, economics and banking.
DIBL: FINANCIAL HIGHLIGHTS (Rs in 000)
JUNE 30, 2012
DECEMBER 31, 2011
Assets 57, 392,583 48,196,449 Liabilities 51,026,815 41,962,400 . QUARTER ENDED
JUNE 30, 2012
JUNE 30, 2011
Profit after taxation 63,217 55,846 EPS 0.09 0.08
The Bank launched Pakistan's first Islamic visa debit card and introduced financial 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 bringing foreign investment to the country.
DIBPL's Investment banking provides its clients with a unique combination of expertise, broad range of investment banking/financial services and access to top regional decision makers. The Bank derives strength from their team that has unrivalled experience in dealing with the largest M&A, advisory and fundraising transactions in the country. In the short span of less than one year, the Investment banking has been instrumental in attracting investment/interests from major groups from the UAE including: Nakheel, Al- Habtoor Group, Dubai properties and limitless.
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.
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.
While the bank's cash management offers comprehensive end-to-end Sharia compliant solutions to meet customers' cash flow requirements.
The bank is proud to introduce Al-Islami Saving & Takaful plan in collaboration with Pak Qatar Family Takaful Ltd. (PQFTL) Al-Islami Saving & Takaful plan is a Shari'a compliant alternative to conventional insurance, offering a unique combination of saving, investment and protection. 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.
Using the Musharaka cum Ijara model, the bank enters into a partnership with customers and helps them in fulfilling their dream of owning a home quickly, conveniently and in a fully Shariah compliant manner. Currently the bank's home finance is offering three product variants: home purchase, purchase of undivided share and purchase of undivided share of property from other bank (balance transfer)
Dubai Islamic current account is a non-remunerative checking account designed for account holders who need to transact frequently. It specifically appeals to businessmen and salaried individuals who need to make frequent payments and deposits in their account.
Based on the Wadi'a contract, the Dubai Islamic current account offers users safe keeping of their cash deposits against DIBPL's guarantee to provide the depositor his funds on demand. However, the depositor permits DIBPL to use or invest his money in its Sharia compliant investments and is neither entitled to investment profit nor does the account holder bear any risk of loss.
ISLAMIC FINANCING IN PAKISTAN
By end of first quarter FY 12, Financing of IBI amounted to almost Rs. 206 billion with Murabaha having highest share (40.1%) followed by Diminishing Musharaka (DM) (35.1%) and Ijara (10.7%). By end March 2012 the share of DM witnessed a rise from 32 per cent to above 35 per cent by end Dec 2011. During the same period share of products like Salam and Istisna had also witnessed a rise however these two products still constitute relatively small share in overall financing portfolio. In terms of Industry wise concentration, no significant change was observed during the first quarter of FY12. However, interestingly the share of sugar industry in overall financing of IBI increased from 3.3 per cent by Dec 2011 to above 5 per cent by March 2012. This rise was in line with the trend of overall banking industry where the share of sugar industry in financing increased to 3.4 per cent from 2.2 per cent during the same period.
Client type wise financing showed negative growth in all categories during the period except consumer and staff financing that depicted a positive growth of 2.5 and 2.2 per cent respectively.