Mar. 10--DIB ISSUES STATEMENT REGARDING PROBE: Dubai Islamic Bank today issued a statement in response to the recent announcement from Dubai prosecutors that seven people have been charged with defrauding the bank of $501m. The alleged crimes were committed by two former employees of the bank and five businessmen linked to a trade finance company known as CCH and a real estate project in Dubai called the Plantation.

The bank acknowledged its exposure to CCH, which has previously received financing of approximately $440m, out of which approximately $330m relates to DIB.

In this regard, the bank stated that it has to date made impairment provisions totaling $135m related to this historical transaction.

DIB also said it has foreclosed on The Plantation, a major development that was planned to cover more than 20 million square feet in Dubailand.

The bank added that it 'continues to pursue through the appropriate legal channels additional assets and receivables in a range of countries. Based on legal precedent, DIB is strongly positioned to receive control of these additional securities, therefore further minimising any potential financial loss to the bank and its stakeholders'.

DIB went on to say that it believes that the 'current provisions together with collaterals foreclosed and being pursued are adequate to cover its exposure to CCH, even in the current economic downturn'.

DIB PLANS 15 PERCENT GROWTH IN CUSTOMER BASE: Dubai Islamic Bank, the world's third largest Islamic bank, is pursuing an aggressive strategy to achieve 15 percent growth in its customer base and a 20 percent rise in its retail assets, despite challenging financial conditions globally, the bank said in a statement. DIB projects that the expansion of its retail banking business, including 10 new branch openings in the UAE this year, will account for approximately 47 percent of the bank's revenue for 2009. The bank plans to enhance its network through Al Islami Express Banking Centres as well as state-of-the-art technological channels.

CREDIT SUISSE CHAIRMAN RESIGNS: Walter Kielholz has resigned his post as chairman of Switzerland's second largest bank, Credit Suisse, to become Swiss Re chairman. Credit Suisse posted a record loss for 2008 but was not as badly hit by the financial crisis as UBS and Swiss Re. Kielholz remains on the board of Credit Suisse. Hans-Ulrich Doerig, who is vice-chairman, is being proposed to replace him.

UAE HAS DHS110BN SHORTFALL IN BANKING SYSTEM: The UAE's banking system has a Dhs110bn ($29.94bn) shortfall between loans and deposits, according to Sultan al Suwaidi, the Central Bank Governor.