Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE and the second largest Islamic bank in the world, has announced an improvement in profitability with a total income of AED5.8 billion and a net profit of AED1.9 billion, up 5% and 18% quarter-on-quarter (QoQ), respectively.

 

Net operating profit before impairments reached AED3.4 billion, up 4% YoY and 10% QoQ, the bank said announcing its results for the period ending June 30, 2021.

 

Net profit showed an improving trend with a 18% QoQ jump to reach AED1.9 billion year to date (YTD) as a result of strong cost management, continued core income growth and lower impairment provisions, it said.

 

Other highlights:

• Robust growth of 8% QoQ in net operating revenues now at AED4.6 billion year to date (YTD), supported by low cost liquidity.

• Strong cost discipline led to further significant reduction in operating expense, down nearly 15% YoY from AED1.47 billion to AED1.25 billion.

• Impairment charge dropped by 29% compared to the same period last year, denoting improving credit quality trend.

• Earning assets remained stable with net financing and sukuk investment at nearly AED233 billion despite significant corporate prepayments.

• Strong growth of 6% in customer deposits now at AED 218.3 billion, supported the balance sheet growth of nearly 1.5% to AED 293.7 billion.

 

“As the world slowly comes out of the shadows of the pandemic, the GCC region is well on its way to return to normalcy. The UAE, in particular, has been phenomenal in the way it has managed the Covid-19 situation, right from the time it erupted until today, when the country holds the proud distinction of having administered the most vaccines in the world per capita. Based on the guidance of the leadership, the UAE has worked hard to ensure recovery during the first half of the year in key economic sectors such as travel, tourism and real estate with consumers and investors maintaining their confidence in the UAE’s successful pandemic response. At DIB, we remain optimistic of the continued positive outlook in the months to come and look forward to unequivocally supporting the major UAE events lined up for this year,” said Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank.

 

“This year is special for all of us in the UAE, citizens and residents alike, as we celebrate 50 glorious years of this young progressive nation. For a country still in its first half a century of existence, the United Arab Emirates is recognized today as the fastest growing nation in the world – it is a matter of great pride for DIB to be part of this journey all through the bank’s more than 45 years of existence.

 

“DIB’s core revenue generation has been on a steady positive trend since the peak of the pandemic with reported figure of AED5.8 billion during the first half of 2021. This was a 5% increase over the previous quarter clearly depicting the bank’s resilience to and the robust strategy adapted in a challenging and changing environment,” he added.

 

Dubai Islamic Bank’s commitments to impacted customers remained strong during the first half of the year with total instalment deferrals now reaching AED9.5 billion across more than 54,000 customers. These relief measures are part of our strategy to ensure that economic activities in the UAE remains sound as the country gears up for one of the fastest economic recoveries in the world, said Abdulla Ali Obaid Al Hamli, Board Member and Managing Director.

 

“With the introduction of DIB’s new business banking proposition, our customers whose businesses are now returning to normalcy, can benefit from further enhanced experiences and services across all the delivery channels reinforced by a robust digital platform in place. 

 

“The re-energized dynamic values of the organization focused on customer care are going to be the key driving force for the bank in 2021 and the years to follow. This strategy is aimed at enhancing DIB’s customer acquisition across all major segments, both on the consumer and corporate banking side,” he said.

 

DIB’s profitability remained strong despite the challenging last 18 months, with a net profit of AED1.9 billion during the first half of 2021. Driven by stronger top line growth (due to volumes) and declining impairments trend, DIB remains on the planned steady recovery path the bank has outlined in its strategy, said Dr Adnan Chilwan, Group Chief Executive Officer.

 

“The first half of the year also saw a strong 18% rise in net profits over the previous quarter, as our core businesses witnessed a steady recovery and operational efficiencies buildup continues. The balance sheet is poised for further enhancement in net margins in line with any increase in interest rates in the markets,” he said. - TradeArabia News Service