DUBAI ISLAMIC BANK PAKISTAN

Introduction
Dubai Islamic Bank Pakistan Limited (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 maintained its position as an innovative solution provider to all the financial
needs of its customers, in accordance to Shari’a.

DIBPL was incorporated in Pakistan as an unlisted public limited company on May 27,
2005 under the Companies Ordinance (1984) to carry out the business of an Islamic
Commercial Bank in accordance with the principles of Islamic Shari’a. The State Bank
of Pakistan (SBP) granted a license to the Bank on November 26, 2005 and
subsequently the Bank received the Certificate of Commencement of Business from the
Securities and Exchange Commission of Pakistan (SECP) on January 26, 2006. The
Bank commenced operations as a scheduled Islamic Commercial Bank with effect from
March 28, 2006.

In recent years, DIBPL management has taken initiatives towards bringing excellence
in its organizational operations. Apart from aligning the processes with its improved
Vision, Mission and Values; DIBPL has initiated launching of New Products, New
Branches, Learning & Development Interventions and Continuous Improvement in
Systems and Processes. Today DIBPL stands at 243 locations (200 branches and 43
branchless banking booths) in 62 cities across Pakistan.

DIBPL has a customer base of over 200,000. As an Minimum Capital Requirement

(MCR) compliant Bank, the DIBPL enjoys a short-term credit rating of ‘A-1’ and .long-
term credit rating of ‘AA-’ with a “Stable” outlook by JCR VIS, indicating the Bank’s
robust position in the industry. The Bank continues to reaffirm its commitment to
Pakistan with new branches and absolutely Halal & Shari’a compliant new products
and services.

Aside from providing comprehensive banking services, DIBPL takes on the role of both
an investor and a facilitator to serve as a catalyst for further Foreign Direct Investment
(FDI) in the country. Pakistan exchequer has benefitted from over US $130 million of
FDI from DIBPL alone. The Bank continues to play an active role in developing the
market of Islamic commercial paper in Pakistan by participating in all major Sovereign
Islamic Sukuk issue from the Government of Pakistan as well as Sukuk issue from the
private sector.

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. The Bank has also been actively involved in
bringing global brands to Pakistan and is honored to act as the sole financial adviser for
various global franchises operating in Pakistan.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.

The Bank’s endeavor since inception has been to provide a variety of unique and
Shari’a compliant products and services to all customers. In this respect, DIBPL has
had first-mover advantage in a variety of Islamic banking services such as Priority
Banking, Platinum Banking, VISA Debit Card, BancaTakaful, Branchless Banking and
Cash Management Services.

Being an Islamic Bank, DIBPL has not only been a provider of “halaal” employment
opportunities to young business and commerce graduates, but has also contributed to
social development through its charity fund to leading charitable foundations. This
includes providing support to hospitals providing medical treatment to the indigent and
flood relief programs.

DIBPL aspires to be the leading Islamic Bank in the industry through branch expansion,
introduction of innovative & comprehensive products, effective compliance and cost
control measures, induction of qualified Islamic banking professionals, implementation
of state-of-the-art banking system, maintaining complete transparency and high ethical
standards in its dealings with customers.
Enhancing its reputation built on the guiding principles of ethical and responsible
modes of banking and finance, Dubai Islamic Bank Pakistan remains exceptionally
well-placed to meet the banking challenges as it strives for excellence in the provision
of Islamic Banking for today’s world. With path-breaking vision and bold strategies,
Dubai Islamic Bank Pakistan endeavors to enhance its status as an industry leader
committed to the goal of providing the better way to bank.

HIERARCHY
The Dubai Islamic Bank (DIB) is an Islamic bank in Dubai established in 1975. It is the
first Islamic bank to have incorporated the principles of Islam in all its practices and is
the largest Islamic bank in the UAE.

DIB is a public joint stock company, and its shares are listed on the Dubai Financial
Market. The bank currently operates 90 branches in the UAE. Adnan Chilwan serves
as the bank's president and chief executive, while Mohammed Al Shaibani is chairman
of the board of directors.

DIB is involved in local and international partnerships, having established DIB Pakistan
Limited, a wholly owned subsidiary which has a network of 200 branches across 62
major cities in Pakistan.DIB also has a representative office in Turkey, and has received
a preliminary banking licence by the Central Bank of Jordan to operate as an Islamic
financial institution, through a new entity - Jordan Dubai Islamic Bank.

2010 New Products/Services

DIB launched Real Estate Investment Trust.

2010 New Products/Services

The bank launched new product, Al Islami Salam Finance, which offersliquidity
through personal financing.

2010 Corporate Awards

DIB named as the Best Islamic Bank by Global Finance magazine.

2010 Corporate Awards

The bank named as the Best Islamic Bank in the UAE by Asiamoneymagazine.

2010 New Products/Services

DIB launched new accidental death and disability insurance plan, Al IslamiTakaful
Riayati.

2010 Corporate Changes/Expansions

The bank opened a branch in Al Nahda.

2010 Regulatory Approval

DIB received the ISO accreditation for quality management.

2010 Corporate Changes/Expansions

The bank's subsidiary Jordan Dubai Islamic Bank, opened a new branchin Amman.

2010 New Products/Services

DIB launched Al Islami Muthmir, an investment plan that offers a built-infamily takaful
cover.

2009 New Product Approvals

Launch of Wajaha which is a distinguished Wealth Management servicefor ultra high

net worth individuals

2009 Corporate Changes/Expansions

Dubai Islamic Bank opened three new branches in the UAE.

2008 Acquisitions/Mergers/Takeovers

Dubai Islamic Bank entered into a strategic alliance with Nakheel

2008 Corporate Changes/Expansions

Dubai Islamic Bank introduced a new subsidiary.

2008 Acquisitions/Mergers/Takeovers
Dubai Islamic Bank, Jordan Dubai Capital and Dubai International Capital LLC
acquired certail interest in International Development Bank.

2008 Corporate Awards

The bank was named as world‟s Best Islamic Retail Bank by GlobalFinance.

2008 Corporate Awards

DIB won „

Best Islamic Bank at Banker' in Middle East Awards.

2008 Contracts/Agreements

The bank signed an AED 266 million Islamic financing agreement withParkway
International Contracting.

2007 Corporate Awards

DIB won Euromoney 'Best Islamic Bank in the Middle East' award.

2007 Corporate Awards

DIB won Real Estate 'Best Investment Management' Bank Award.

2006 Acquisitions/Mergers/Takeovers

Deyaar acquired Omega Engineering Co.

2006 Corporate Awards

DIB won Euromoney‟s Best Islamic Bank in Middle East and

Best GlobalSukuk House Awards.

2006 Corporate Awards

DIB won Golden Trophy in UAE Web Awards Ceremony.

2005 Acquisitions/Mergers/Takeovers
DIB acquired Al Khartoum Bank SA privatized by Sudan.

2005 Corporate Awards

DIB received JPMorgan Chase 2004 Elite Quality Recognition Award.

2005 Corporate Awards

DIB won the Best Consumer Internet Bank Award by Global Finance.

2004 Corporate Awards

DIB won J. P. Morgan Chase Quality Recognition Award.

2001 Acquisitions/Mergers/Takeovers

DIB acquired Arab Islamic Insurance Company.

1975 Incorporation/Establishment

DIB was incorporated in 1975.

HIERARCHY OF FINANCIAL MANAGEMENT

Lowest Insurance/Takaful Rates

Guaranteed Lowest Insurance/Takaful rates compared to any other Bank.

Payment Advance Booking Cases

No monthly rental payments will be made by the customer before delivery of the car
in Advance Booking cases.

Monthly Rental

Competitive and affordable monthly rentals as per industry standards.

Financing Amount

DIBPL will finance up to 85% of the car value.

Minimum financing: Rs.100,000
Maximum financing: Rs. 5,000,000

Islamic Product

We provide fast and hassle free processing of application through a Sharia compliant
process.

Flexibility
 Local or Imported/Re-conditioned Cars.

 New or Used Cars.

 Payment plan with tenure options ranging from 1-7 years.

 Ready Delivery and Advance Booking.

 Income clubbing option.

 Up to 9 year old vehicle can be financed

Customer Minimum age Maximum age

class at the time of at the time of
application finance
maturity
salaried 21 Years 60 Years

Self Employed 21 Years 65 Years

Professional
Self Employed 21 Years 65 Years
Businessman

Your Monthly Net Income is Rs.25,000

You Have Been Working For

Salaried 3 Months

Self Employed Professional 6 Months

Self Employed Businessman 12 Months

Financial information
Figure 2013 2012 2011

Total Assets] 30,613,361 22,778,319 19,587,790

Shareholder's Equity 2,687,419 1,548,180 1,473,986

NIAT 461,003 234,456 159,798

Dividends NA 150,000 100,000

Assets Growth 34.40% 16.23% 27.81%

Earning Growth 96.64% 46.72% 4.77%

SWOT ANALYSIS

Strengths 1. It is present today in one of the

world’s fastest-growing economic
sectors (Islamic banking and finance)
that comprises of more than 400
institutions tasked with managing assets
globally
2. Dubai Islamic Bank has been named as
the Best Islamic Bank in the region by
Banker Middle East Magazine
3. DIB has been proactive in creating
partnerships and alliances at both the
local and international level. The bank
has established DIB Pakistan Limited, a
wholly owned subsidiary
4. DIB has strong financial stability and
strong capitalization
Weaknesses 1. The bank’s lending profile is with asset
quality concerns resulting in high
impairment charges
2. Exposure to Real Estate sector which
is facing net losses could lead to future
losses
3. The bank limits its revenue generation
opportunities by having its operations
confined to a geographical region
Opportunities 1. The focus on expansion of distribution
channel could provide new
opportunities to the bank
2. Launch of new financial products by
the bank could help it sustain in highly
competitive banking environment
3. Islamic banking and finance is today
one of the world’s fastest-growing
economic sectors and has opportunities
to grow in emerging economies
Threats 1. Intense competition among Islamic
and conventional banks may keep profit
margins at minimum
2. Regulatory Changes concerning to the
global financial crisis are going to be
stricter
3. Fluctuations in interest rates

COMPETITORS
1. Abu Dhabi Islamic Bank

2. First Gulf Bank PJSC

3. Al Salam Bank BSC

4. Emirates NBD Bank

5. Mashreq Bank PSC

6.Habib Bank Limited

7.Allied Bank Limited

8.Summit Bank etc

Recomandations

Dubai Islamic Bank may raise Tamweel stake

Dubai Islamic Bank Pakistan Limited (DIBPL) announced the successful issuance of
its Rated, Unsecured, Subordinated and Privately Placed Tier-II Mudaraba Sukuk.
The PKR 4 Billion Sukuk issue was oversubscribed by 1.7 times the issue size
reflecting strong demand and confidence by the investors in one of the leading global

DIB Pakistan is a wholly owned subsidiary of Dubai Islamic Bank PJSC, UAE (DIB).
DIB was established in 1975 as the world’s first Islamic Bank in the UAE. With
Group assets of USD 50 Billion, a market capitalization of around USD 7.0 Billion,
and workforce of more than 8,000 employees within the group, the organization is
fast being recognized as a formidable force in Islamic Finance and one of the most
progressive Islamic Finance institutions in the world. Currently, DIB has presence
across all Emirates in the UAE with growing international operations in South Asia,
Far East, Middle East, Europe and Africa.

The Credit Rating of DIBPL was recently upgraded by JCR-VIS from “A+” (Single A
Plus) to “AA-“ (Double A Minus) for Medium to Long Term and “A-1”(A One) for
Short Term with Stable outlook. During 2016, DIBPL pursued a consolidation
strategy which has resulted in significant improvement in financing and deposit mix.
Asset quality indicators of the bank compare favorably to peers. Profit before tax of
the bank increased by 93% during 2016 on the back of improvement in core
profitability. The ratings are underpinned by the projected growth in profitability,
improved efficiency and sustained asset quality indicators.

The Sukuk Issue is rated A+ (Single A Plus) by JCR-VIS Credit Rating Company
Limited. The Sukuk has a 10 year tenor and carries an expected profit rate of 50 basis
points per annum over 6 Month KIBOR. The Sukuk is redeemable at maturity and has
a Call Option which is exercisable after 5 years.This landmark transaction was
executed following a meeting of the Board of Directors of the Company on June 1,
2017 to shore up the bank’s Capital Adequacy Ratio (CAR) in line with Basel III
requirements keeping in view the bank’s increasing financing portfolio. The issuance
received interest from a diverse range of financial institutions including banks, mutual
funds and insurance/takaful companies. In total, a number of 26 institutional investors
participated in the issue.

Mr. Junaid Ahmed, Chief Executive Officer of Dubai Islamic Bank Pakistan Limited,
speaking at the occasion said, “This Sukuk issuance will provide the much needed
impetus to the bank to continue with its financing activities focusing on Corporate,
SME, Commercial and Consumer Banking. The bank has received an overwhelming
response from the market and we were able to close this transaction within a record
time thanks to timely approvals granted by State Bank of Pakistan“.

References

 1,027 Dubai Islamic Bank". Forbes. May 2016.

 Retrieved 19 January 2017.Solovieva, Daria (29 July 2015).
 "Dubai Islamic Bank Rises Most in 3 Months on Second-Quarter Net".
Bloomberg. Retrieved 17 January 2017.Antony Peyton (28 July 2016).
 "Dubai Islamic Bank selects Nasdaq BWise platform for risk and
compliance". Banking Technology.
 Retrieved 7 March 2017."Dubai Islamic Bank to open 25 new branches in
Pakistan". Pakistan Today.
 25 October 2011. Retrieved 17 January 2017.Rizvi, Muzaffar (6 September
2015). "DIB Pakistan bets big on aggressive growth strategy".
 Khaleej Times. Retrieved 17 January 2017.