Dubai Bank’s profits soar as deposits double

Dubai Bank has announced a net profit of US$28 million for 2005. The bank’s net profit growth rate, over the first half results, represented a 121% increase.

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By  Andrew White Published  February 12, 2006

Dubai Bank has announced a net profit of US$28 million for 2005. The bank’s net profit growth rate, over the first half results, represented a 121% increase. “We are extremely pleased with our results for the year,” said CEO Ziad Makkawi. “Dubai Bank is keeping to its promise of building itself up into one of the UAE’s major financial institutions.” The bank, recently taken over by government investment vehicle Dubai Holding, achieved a doubling of its total assets. These topped US$1.3 billion at the end of last year, compared to US$650 million at the end of 2004. Deposits increased to US$1.1 billion, and loans and advances to US$436 million — representing an increase of 94.5% and 37% respectively, over the previous year. Shareholder equity grew by 29%, and the bank's operating income for 2005 was US$74 million, including non-interest income of US$40 million. This represents an increase of 143% year-on-year. “Clearly, 2005 represented a huge turning point for the bank,” remarked Makkawi. “We are optimistic that Dubai Bank will live up to its name and make an important contribution to Dubai, the UAE and the region — becoming ‘Dubai’s Bank’ in all our target markets.” Launched in late 2002, Dubai Bank had initially planned to break even by 2006. However, the bank’s performance has exceeded even the wildest of expectations, achieving considerable growth in its core commercial business and in the newly established merchant banking and capital markets operations. “Going forward, we will continue to expand and improve the range of services and products we offer,” said Makkawi. “Next year will see the launch of our brokerage operations both in the DFM, the ADSM and the newly established DIFX. 2006 will also be the year where we position ourselves to meet the growing demand for Shari’a compliant products and services.” “We continue to push into new markets and have a full pipeline of transactions from the GCC, Turkey, India, Pakistan and other emerging markets,” he added.

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