Dubai Islamic Bank announced that consolidated net income has increased significantly to 2.7 billion dirhams, up 45% year-on-year, compared to 1.86 billion dirhams in the year-ago quarter.Total new lending and sukuk investment saw a significant increase of 33 billion dirhams during the period.
The strong growth was driven by rising core revenues and sustained lower impairments.
Gross new financing and sukuk investments saw an increase of Dhs33bn during the period. Excluding regular repayments and maturities, the bank saw a significant Dhs20bn growth.
Net operating revenues showed robust growth of 9 percent YoY and 4 percent sequentially to reach Dhs5.039bn.
Total income reached Dhs6.26bn compared to Dhs5.84bn, substantially up by 7 percent YoY and 8 percent sequentially.
Net operating profit stood at Dhs3.68bn, an increase of 9 percent compared to Dhs3,38bn in H1 2021.
The group’s balance sheet remained at Dhs282.2bn, up 1 percent YTD.
Customer deposits are now at Dhs202.2bn with current account savings accounts, comprising 44 percent of the deposit base.
Other highlights include:
Significantly lower impairments of Dhs948 million against Dhs1.49bn in 2021, down by 37 percent YoY, demonstrated continued improvement in asset quality.
The non-performing financing (NPF) ratio continued its downward momentum, now at 6.5 percent lower by 30 bps YTD compared to 6.8 percent in 2021.
Cost to income ratio was amongst the best at 26.9 percent, lower by 140 basis points (bps) sequentially.
Liquidity remained healthy with a finance-to-deposit ratio of 96 percent and liquidity coverage ratio of 117 percent.
Commenting on the performance, Mohammed Ibrahim Al Shaibani, chairman of Dubai Islamic Bank, said: “Despite global headwinds, the bank’s total income rose strongly by 7 percent YoY to more than Dhs6.3bn.” 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 CEO, added: “Our net financing and sukuk investments expanded strongly by nearly 6 percent YTD to reach Dhs241bn, supported by increasing volumes across all businesses.” The first six months have already seen new gross financing and Sukuk investments to the tune of Dhs33bn, and normal repayments and early settlements aside, we are left with Dhs13bn of growth, which is a remarkable achievement.
“The quality of bank assets has improved steadily over the past few quarters, and the NPF ratio has improved by 30 basis points year-to-date to 6.5%. We are in the current business environment. With a proactive and prudent approach to growth, we continue to strive to strengthen lending and manage asset quality. As a result, the cost of risk, which is now down to 76 basis points, is a successful strategy.