Dubai Islamic Bank posts 45% rise in net profit for Q1 2022

Dubai Islamic Bank posted a group Substantial growth in Group Net Profit of 45% YoY to AED 2,700 million vs AED 1,864 million in same period last year. The strong growth was driven by rising core revenues and sustained lower impairments.

The bank’s Gross new financing and sukuk investments saw a remarkable increase by AED 33 billion during the period, Excluding regular repayments and maturities, the bank saw an incredible AED 20 billion growth.

Net financing and sukuk investments grew by 6% YTD to AED 241.3 billion compared to AED 228.5 billion in 2021 indicating a strong rebound in 2022, despite regular repayments and sukuk settlements of AED 13 billion as well as early repayments of AED 7 billion.

Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank said: “Global growth has been moderate during the first half of the year due to events that have led to trade and supply chain disruptions, Despite these occurrences, the GCC region and the UAE remain strong building on the economic foundations and reforms implemented earlier. Dubai’s progressive economic recovery remains on track and DIB’s momentous first half results reflect the improving macro economic conditions”.

“With a comprehensive and integrated sustainability strategy, the bank is fully aligned towards the vision of the UAE President and is committed towards enhancing the nation’s economic competitiveness, while simultaneously advancing the sustainability objectives of the country”.

“Despite global headwinds, the bank’s total income rose strongly by 7% YoY to more than AED 6.3 billion. This clearly demonstrates the bank’s robust fundamentals and the strength of the balance sheet to navigate the uncertainties in the market”.

Dr. Adnan Chilwan, Group Chief Executive Officer said: “Another remarkable set of results with net profit reaching AED 2.7 billion, a 45% YoY rise, on the back of a strong economic rebound. This significant jump primarily stems from core business growth with net operating revenues rising by 9% YoY and 4% QoQ to AED 5 billion, while a fall in the impairments charges by 37% YoY reflects the fast improving asset quality”.

“The improving profitability trend has had a positive impact on shareholder returns with ROA now at 2% (+47bps YTD) and ROTE at 17% (+400bps YTD)”.

“Our net financing and sukuk investments expanded strongly by nearly 6% YTD to reach AED 241 billion supported by increasing volumes across all businesses. The first 6 months have already seen new gross financing and sukuk investments to the tune of AED 33 billion, and normal repayments and early settlements aside, we are left with AED 13 billion of growth, which is remarkable achievement”.

“The bank’s asset quality has continued to improve sequentially over the past few quarters with a 30bps YTD improvement in NPF ratio which now stands at 6.5%. The bank remains persistent in its efforts to strengthen credit underwriting and manage asset quality with a proactive and cautious approach to growth amidst the current operating environment”.