2022: Dubai Islamic Bank reports highest ever net profit

Dubai Islamic Bank (DIB) recorded a group net profit of Dhs5.6bn for the period ending December 31, 2022.

Net profit rose 26 per cent year-on-year against Dhs4.4bn recorded for 2021, driven by “rising core revenues, prudent cost management and sustained lower impairments”, DIB said in a statement on Wednesday.

“DIB attained its strongest year in its history with robust growth in profitability as total income reached Dhs14bn, a 20 per cent YoY growth and balance sheet now at Dhs288bn witnessing a 5-year CAGR of 7 per cent,” said Mohammed Ibrahim Al Shaibani, director-general of His Highness The Ruler’s Court of Dubai and chairman of Dubai Islamic Bank.

“In light of the group’s strong performance, we are pleased to proposed a 30 per cent dividend to our valued shareholders.”

The lender reported Dhs14bn in total income for the year, marking a 20 per cent year-on-year rise against Dhs11.79bn recorded in 2021. Its net financing and sukuk investments grew 5 per cent year-on-year to Dhs238bn, while it secured nearly Dhs63bn in annual gross new underwriting and sukuk versus Dhs50bn in FY2021.

#Dubai Islamic Bank Group, a listed entity on the @DFMalerts, has reported a significant increase in its net profit for 2022, achieving record growth of 26% year-on-year. The bank’s net profit reached an impressive AED 5,552 million, compared to AED 4,406 million in 2021. pic.twitter.com/ZL67NeB61b

— Dubai Media Office (@DXBMediaOffice) January 25, 2023

The bank’s net operating revenues showed an 11 per cent year-on-year increase to reach Dhs10.46bn, while a 12 per cent year-on-year rise was reported in the lender’s net operating profit, totalling Dhs7.73bn.

The lender’s customer deposits stood at Dhs199bn with CASA comprising 44 per cent of the deposit base. Impairment charges, meanwhile, declined 14 per cent to Dhs2.103bn from Dhs2.448bn for previous year.
Cost to income improved to 26.1 per cent, return on assets stood at 2 per cent and ROTE at 17 per cent.

“Dubai Islamic Bank posted spectacular annual profitability during FY2022 amounting to Dhs5.6bn, the highest ever net income in our bank’s history. Core banking profitability metrics and ratios were also solid with net operating revenue up 11 per cent YoY due to a robust balance sheet structure,” added Dr Adnan Chilwan, group chief executive officer.

“Return ratios followed suit with at ROA 2.0 per cent (+47 bps YoY) and RoTE 17 per cent (+400 bps YoY) surpassing our full year guidance and exhibiting the bank’s agility to remain on track despite the on-going subdued global economic environment.”

“We continue to maintain firm control on expenses leading us to deliver to the best cost to income ratio in the market at 26.1% while maintaining head room to elevate the bank’s system upgrades.”