Dubai Islamic Bank H1 profit slips 12% to Dh1.86 billion

Waheed Abbas /Dubai Filed on July 28, 2021
Dubai Islamic Bank remains on the planned steady recovery path. — File photo

Customer deposits increased to Dh218.3 billion in the first half of 2021, from Dh205.9 billion at 2020-end.

Dubai Islamic Bank (DIB) net profit for the first half of 2021 fell 12 per cent to Dh1.86 billion as compared to Dh2.11 billion for the same period last year as revenues dropped.

The bank’s total income fell to Dh5.842 billion as compared to Dh6.824 billion during the comparative period, falling by 14 per cent. While net operating revenue remained largely stable year-on-year to reach Dh4.628 billion.

Operating expenses declined to Dh1.246 billion compared to Dh1.471 billion in the same period of last year, an improvement of 15 per cent. The reduction in operating expenses is attributed to the continued integration synergies achieved as well as a disciplined approach to cost management.

Mohammed Ibrahim Al Shaibani, director-general of His Highness The Ruler’s Court of Dubai and chairman of Dubai Islamic Bank, said as the world slowly comes out of the shadows of the pandemic, the GCC region is well on its way to returning to normalcy.

“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. 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 Al Shaibani.

Abdulla Ali Obaid Al Hamli, managing director of Dubai Islamic Bank, said the bank’s total instalment deferrals reached Dh9.5 billion across more than 54,000 customers.

“These relief measures are part of our strategy to ensure that economic activities in the UAE remain sound as the country gears up for one of the fastest economic recoveries in the world,” he said.

Dr Adnan Chilwan, group CEO of DIB, said driven by stronger top-line growth due to volumes and declining impairments trend, the bank remains on the planned steady recovery path the bank has outlined in its strategy.

“The balance sheet is poised for further enhancement in net margins in line with any increase in interest rates in the markets.”

He said funding and liquidity continue to be a strength of the bank with customer deposits growing by six per cent year-to-date to now reach Dh218 billion.

Impairment charges declined by 29 per cent year-on-year to Dh1.498 billion while the non-performing financing (NPF) ratio stood at 6.3 per cent with impaired financing at Dh13.1 billion versus Dh12.1 billion at the end of 2020.

Customer deposits increased to Dh218.3 billion in the first half of 2021, from Dh205.9 billion at 2020-end. —

Waheed Abbas

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