Dubai Islamic Bank posts 34% rise in group net profit for Q1-Q3 2022
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Dubai Islamic Bank posts 34% rise in group net profit for Q1-Q3 2022

Dubai Islamic Bank posts 34% rise in group net profit for Q1-Q3 2022

The bank reported total income of Dhs9.873bn, rising 10 per cent year-on-year, compared to Dhs8.94bn last year

Dubai Islamic Bank

Dubai Islamic Bank posted Dhs4.101bn in group net profit for the first nine months of the year, rising 34 per cent year-on-year, against Dhs3.069bn reported during Q1-Q3 2021.

Net financing and sukuk investments grew 3.3 per cent year-to-date (YTD) to reach Dhs236bn. The bank attained nearly Dhs43bn YTD in gross new underwriting, it said in a statement.

Total income reached Dhs9.873bn in the first nine months of the year, compared to Dhs8.946bn from an year-earlier period, recording 10 per cent year-on-year growth. Meanwhile, net operating revenues showed a 7 per cent year-on-year rise to reach Dhs7.653bn.

“The bank’s third quarter profitability metrics and ratios have been remarkable with 10 per cent YoY growth in total income reaching nearly Dhs10bn and ROA 2.0 per cent (+50 bps YTD) and RoTE 16.8 per cent (+380 bps YTD),” said Mohammed Ibrahim Al Shaibani, chairman of Dubai Islamic Bank.

“The board has full confidence in  the UAE’s efforts in demonstrating effectiveness to the Financial Action Task Force (FATF). We continue to engage with regulators on the compliance and risk agenda and optimise investments in this critical area to ensure that the bank has the most stringent controls in place to help address financial crimes and frauds as well as money laundering.”

Net operating profit equalled Dhs5.612bn during Q1-Q3 2022, increasing 6 per cent compared to Dhs5.275bn in the first nine months of 2021. Customer deposits stood at Dhs187bn, while impairment charges declined 33 per cent year-on-year to Dhs1.45bn from Dhs2.17bn recorded in the previous year. Total equity now stands at Dhs43bn.

“The bank’s incredible performance to date with net profits rising by 34 per cent YoY to reach Dhs4.1bn has been the highest ever nine months performance in the bank’s history,” added Dr Adnan Chilwan, group CEO.

“The strong improvements in our asset quality has been gaining momentum over the past few quarters with significantly lower impairments of 33 per cent YoY and NPF ratio at 6.5 per cent (-30 bps YTD). Our digital aspirations continue to accelerate with double digit YoY growth across key metrics supported by enhanced journey experiences and services as well as on-going digital marketing promotions and campaigns to our large customer base.”

Read: Dubai Islamic Bank teams up with UAE MOI to implement digital KYC journey

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