DIB Q2 profit declines 20 pc to AED1.01 bn

Total assets reach AED300 bn; deposits grow 31 pc to AED215 bn

BBN Report

DUBAI/October 20: Dubai Islamic Bank (DIB), the oldest and the largest Islamic bank in the country, reported a net profit of AED1.01 billion for the quarter ending September 30, 2020 compared with AED1.26 billion the bank posted for the same period last year – representing 20 per cent year on year decline.

The nine month net profit also witnessed a 22 per cent drop against the same period last year from AED4.01 billion to AED3.12 billion.

The total assets of the bank reached nearly AED 300 billion as of September 30, 2020, an increase of 29 per cent YTD. Total income for the said period was around AED9.9 billion supported by significant increase in fee income of 19 per cent.

Capital ratios and liquidity remain robust despite significant growth in earning assets relief measures of nearly AED8 billion extended to support customers under TESS program.

The net financing and sukuk investments rose to AED234.5 billion against AED184.2 billion in 2019, up by 27 per cent YTD. The customer deposits increased to AED214.6 billion up by 31 per cent YTD.

Significantly, the CASA component increased to 39 per cent from 33 per cent when compared with the previous year. The bank’s cost to income ratio was stable at 29.4 per cent as on September 30.

 Strong CAR

The capital adequacy (CAR) and CET 1 ratios improved to 17.3 per cent and 12.9 per cent respectively, despite growth and conservative provisioning.

Mohammed Ibrahim Al Shaibani (seen in the picture), chairman of Dubai Islamic Bank (DIB), said at home, the UAE remains committed towards economic development with a strong focus on precautionary safety measures as the country witnesses the gradual recovery of trade and business services.

Noor Bank acquisition

He said DIB’s strategic acquisition of Noor remains on target for completion by year end. The managing director of the bank, Abdulla Al Hamli, said DIB’s robust consumer business coupled with digital offerings remain aligned towards supporting immediate on-boarding of new customers as well as continuing to service and engage with them on the same.

The group Chief Executive Officer, Dr Adnan Chilwan noted that the banking group’s diversified revenue streams continue to sustain the bank’s healthy profitability levels during the period as the net operating revenue actually increases to over AED6.9 billion despite the pandemic.

 

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