6
Dar Al-Maal Al-Islami Trust
Annual Report 2013
prepared the launch of four Saudi
mutual funds pertaining to equity,
real estate and liquidity. I am pleased
to report that there has been an
overwhelmingly positive response
from future investors for these
products. The Investment Banking
department successfully sourced
and conducted due diligence
on a number of private equity,
corporate finance and mergers
and acquisition transactions. DMI
enthusiastically looks forward to
the continued development and
significant contribution that GIAMCO
will bring to the Group in the future.
Faisal Islamic Bank of Egypt, in
which the Group owns a 49%
interest, realized extraordinary
results considering the magnitude
of increased economic insecurities
brought on by both local and
regional political turmoil. Significant
achievements reached in this
unfavourable business environment
included record net profits of
EGP 641.3 million ($94 million)
representing an increase of 1.4%
over the prior year and considerable
growth in total assets of 10.4% to
EGP 45.4 billion ($6.5 billion) at
31 December 2013. Total equity
amounted to EGP 3,239 million
($466 million). During the first
year of implementing the new
banking strategy, which included
offering products in both local and
foreign currency to clients with a
high disparity of income levels,
FIBE realised a 9% increase in its
savings accounts and certificates
amounting to EGP 40.7 billion
as well as an 11% gain in net
investment accounts amounting to
EGP 41.5 billion. It is also worth
mentioning that all non-performing
funds within the investment
portfolio are completely covered
by provisions to ensure sufficient
guarantees, whilst maintaining safe
risk levels on all others. FIBE is very
satisfied with this year’s results and
fully anticipates continued growth
and expansion of its presence.
Effective 1 January 2013, the
International Accounting Standards
Board adopted the IFRS 10
accounting standard. IFRS 10
establishes principles for the
presentation and preparation of
consolidated financial statements
and further defines the principle
of control. As a direct result of the
implementation of IFRS 10, the DMI
Group concluded during the 2012
year end audit to fully consolidate
Faisal Islamic Bank of Egypt as a
group subsidiary, with a 51% non-
controlling interest in its 2013 group
accounts. In hindsight, it could not
be shown in practice that DMI had
sufficient de facto control as per the
definition of the new accounting
standard. Therefore, DMI has now
determined that equity accounting
for its 49% interest in FIBE as an
associated company under IAS 28
shall be continued.
On behalf of the Board of Supervisors
I would like to express thanks and
appreciation to our participants for
their continued support during the
past year. Furthermore, I wish to
take this opportunity to thank the
Religious Board for its counsel and
guidance and the staff for their
commitment and dedication.
Allah is the purveyor of success.
Mohamed Al Faisal Al Saud
