UAE: Dubai Islamic Bank targets loan growth in 2017

By Sam Goldfinch, RFi Group

After recording a large 58.4% increase in net profit in Q4 2016, Dubai Islamic Bank (DIB) has claimed that it is looking to increase its loan books by between 10% - 15% in 2017. DIB’s Tier 1 capital adequacy ratio, (also known as capital-to-risk weighted assets ratio) a crucial indicator of a bank's health, stood at 17.8% at the end of December, well above the 8% required by the local regulator. As a result DIB has more than enough room to grow its loan book further. DIB set the same target for loan growth at the start of 2016 and beat it, suggesting that such rapid growth may again be achievable. According to RFi Group data, DIB currently holds joint first place for market share of personal loans in the UAE, alongside Abu Dhabi Commercial Bank, although continued growth could see it take the overall market lead.

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