Dubai Islamic Bank posts 23% dip in net profit for H1 2020

Dubai Islamic Bank has posted a net profit of Dhs2.1bn for H1 2020, 23 per cent lower against Dhs2.7bn in H1 2019.

The bank’s total income of Dhs6.8bn for the first half of 2020 also fell 2 per cent from Dhs6.98bn in H1 2019.

Operating expenses reached Dhs1.47bn in H1 2020 against Dhs1.2bn during the same period in 2019, marking an increase of 22 per cent.

Meanwhile, the net financing and sukuk investments increased to Dhs237.1bn in H1 2020 from Dhs184.2bn at the end of 2019, posting an increase of 29 per cent.

Customer deposits grew to Dhs206.5bn from Dhs164bn at year-end 2019, marking a growth of 26 per cent.

Similarly, total assets rose 27 per cent year-to-date, to reach Dhs295bn.

Mohammed Ibrahim Al Shaibani, director-general of His Highness The Ruler’s Court of Dubai and chairman of Dubai Islamic Bank, said: “The new UAE government structure, along with more than Dhs6bn Dubai economic stimulus measures that were unveiled by the leadership, are designed to bolster the market and boost investor confidence during and post the Covid era. As the pandemic is gradually contained, Dubai and the UAE’s sustainable business growth models remain on track to lead the economic recovery in the region. During these critical times, we continue to engage effectively with all our stakeholders in order to ensure that our business operations are seamless.”

“The gradual return of economic activities is a manifestation of Dubai’s capabilities to withstand and address any significant global economic shocks. DIB has been able to quickly adapt to the so-called “new normal” in terms of servicing our customers via our diverse channels including the branch network and digital platforms, with minimal business disruption blended with stringent safety measures,” said Abdulla Al Hamli, managing director, Dubai Islamic Bank.

In June, the bank closed a $1bn long five-year sukuk with a profit rate of 2.95 per cent per annum.

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