Investment & Commercial Banking

Presented By:

Sardar SikanderArslan Azhar

Tajjamal FarooqShozab Qureshi

Introduction

• Dubai Islamic Bank has the unique distinction of being the world’s first Islamic bank since 1975

• Got license for the establishment of its operations in Pakistan on Saturday, November 26, 2005

• offering state-of-the-art Sharia compliant products

• DIBPL is 100% owned by Dubai Islamic Bank PJSC (Public Joint Stock Company)

Vision Statement

To be the leading Islamic Bank providing Shari’a compliant financial services, by creating value for all stakeholders.

To provide diversified Shari’a compliant financial services and products through the best of innovation, talent and operational excellence while ensuring consistent growth and profitability.

Mission Statement

Value

• Trust• Communication• Innovation• Caring• One Team, One Goal

Products

Current Account

Current Account is offered in Pak Rupee, US Dollar, UK Pound, Euro, UAE DirhamFeatures:• Unlimited number of deposits

and withdrawals • No minimum balance

restriction• Low transaction charges• Free account statement on a

six monthly basis

Savings Account

Savings Account is offered in Pak Rupee, US Dollar, UK Pound, EuroFeatures:• Monthly profit payment on

the average balance of the month

• Unlimited number of deposits and withdrawals

• Standing instructions option for payment of bills and other periodical payments

Products

Fixed Deposit AccountFixed Deposit placements can be made in Pak Rupee, US DollarFeatures:• Minimum investment amount

as low as Pak Rs.100,000/- or USD 2000/-

• Available in tenors of 1, 3, 6 months or 1, 2, 3, 5 and 7 years

• Profit frequency options are monthly or quarterly, semi-annually or at maturity

Visa Debit CardFirst Islamic visa debit card

Features:• Cash withdrawal of Rs. 50,000

max. per day• Funds transfer through

accounts is Rs. 300,000 per day

• Mini statement can be demanded for last 5 transactions done on card

Products

Home Finance

Dubai Islamic Home Finance is offering Home Purchase, Purchase of undivided share (Home Renovation) & Purchase of undivided share of property from other bank (Balance Transfer)

Features:• 100% Shariah Compliant• Minimum Financing amount of Rs. 0.5 million.• Maximum financing of up to Rs. 50 million.• Fastest processing time

Home Finance

Pricing Mechanism / Profit Rate Criteria:Applicable Profit Rate = Relevant KIBOR + Margin

Customer Eligibility Criteria (Pakistani Residents)• Age 25-65.• Minimum monthly net income of Rs.40,000/-.• Self-employed Businessmen/Professionals or Salaried individuals.• Property Eligibility Criteria (The qualifying property must be

located in Cities (Karachi, Lahore, Islamabad, Rawalpindi and Faisalabad) of Pakistan)

• The minimum value of the property must be greater than Rs.2,000,000/-.

Business Finance

Dubai Islamic Business Finance offers Purchase of undivided share (New to Bank / Fresh), Purchase of undivided share of property from other banks (Balance Transfer)

Features• 100% Shariah Compliant• Minimum financing amount of Rs. 500,000• Maximum financing of up to Rs. 20 million• Fastest processing time• Financing up to 70% of your property value

Business Finance

Customer Eligibility Criteria• Pakistani National• Age 23-60 years• Minimum monthly net income of Rs.50,000• Self-employed Businessmen/ProfessionalsProperty Eligibility Criteria• The qualifying property must be located in Cities (Karachi,

Lahore, Islamabad and Rawalpindi) of Pakistan• The minimum value of the property must be greater than

Rs.2,000,000

Financial Statements

For Year 2012

• Gross Profit2,874,330

• Net Profit344,724

• Cash Flow during year5,309,482

• Closing Cash Flow9,856,404

• Total Assets63,509,562

• Share Capital6,976,030

For Year 2013

• Gross Profit3,113,888

• Net Profit136,860

• Cash Flow during year(2,724,848)

• Closing Cash Flow7,131556

• Total Assets80,256,612

• Share Capital6,976,030

SWOT Analysis

Strength• The first international Islamic

Bank in Pakistan with a network of over 17 branches in 6 cities

• The members of the Shariah Supervisory Board of DIBPL are internationally-renowned scholars, serving on the boards of many Islamic banks operating in different countries.

• Online banking service means that a customer can withdraw and deposit his money at any branch in the country.

Weakness• The management was of the

view that the customer should come to them and they don’t need to go to the customer

• It was observed in the bank that the degree of satisfaction of the employees was quite low.

• Due to the dissatisfaction of staff and recession, there is high turnover among them

SWOT Analysis

Opportunities• House financing sector can be

targeted to maximize the profit

• Growing demand of Islamic financial product and services

• Increase branch network within the country

• Coming up with products for the SME to targeting the medium level customers

Threats• Aggressive marketing by the

competitor banks• Large number of conventional

commercial banks• Few banks that are providing

Islamic banking services, hence more can enter in near future

Shareholding PatternNames Shares %

Investment Corp. of Dubai (Investment Management)

1,131,901,797 28.6%

Saleh Saeed Ahmad Lootah 273,387,888 6.91%

The Vanguard Group, Inc. 15,950,680 0.40%

Robeco Institutional Asset Management BV 15,136,225 0.38%

BlackRock Fund Advisors 11,808,594 0.30%

William Blair & Co. LLC (Investment Management)

11,129,994 0.28%

Norges Bank Investment Management 7,801,592 0.20%

Causeway Capital Management LLC 6,639,522 0.17%

FIL Investments International 6,481,101 0.16%

Putnam Investment Management LLC 4,830,557 0.12%

Suggestions

• The bank must pursue a very aggressive marketing and advertising strategy

• There is a need of creating satisfaction among employees• The personnel in the bank should not overstressed with

workload• Job training is the very important aspect that DIBPL is lacking

in.• DIBPL should need to improve its website. More information

relating to financial performance of the bank should be available on the website.