Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE and the second-largest Islamic bank in the world, has announced that net profit for the first nine months of 2021 fell two per cent to Dh3.1 billion as its total income dropped during the January-September period.
DIB’s net operating revenues reached Dh7.1 billion, growing on the back of improving economic conditions and the gradual return of business activities.
Mohammed Ibrahim Al Shaibani, director general of His Highness The Ruler’s Court of Dubai and chairman of Dubai Islamic Bank, said the economic recovery of the UAE remains on track with a strong performance of the non-oil sectors driven by improving demand of business activities and rising consumer confidence that is supported by high vaccination rates of the domestic population.
“The successful opening of the World Expo has demonstrated the nation’s ability to quickly recover from the global pandemic with all key economic sectors geared towards supporting this major event… The UAE banking sector has remained resilient with healthy liquidity, strong capital buffers and improving profitability since the start of this year,” he said.
Abdulla Ali Obaid Al Hamli, managing director of DIB, said: “Our funding sources and liquidity continue to be a key strength of the bank with customer deposits now reaching Dh214 billion, with growth primarily supported by the wholesale business representing more than 50 per cent of the deposit base.”
Dr Adnan Chilwan, Group CEO of DIB, said the bank’s total income reached Dh8.9 billion, up four per cent quarter-on-quarter
“The steady improvement in our profitability is supported by our consistent efforts to continue to extract synergies from the acquisition, whilst pushing for further efficiencies via our digitalization drive and further optimization of our branch and ATM network,” he said, adding that opex was reduced by a considerate 12 per cent YoY to reach Dh1.9 billion, thereby, leading to one of the lowest cost-income ratio in the market at 26.2 per cent.
“Whilst the economic recovery continues, our prudent approach to growth and profit protection saw us strengthen our fixed income book with Sukuk investments now reaching Dh40 billion from Dh35 billion at the start of the year. This portfolio primarily consists of sovereigns and financial institutions and the strategic growth is in line with our objective and focuses on extending business in low-risk sectors,” added Dr Chilwan.
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