Dubai Islamic Bank achieved net profits exceeding 1.1 billion dirhams during the first quarter of this year, despite the introduction of additional provisions amounting to about 1.5 billion dirhams.
The bank said in a statement yesterday, during which it announced the financial results for the period ending on March 31, 2020, the increase in customer deposits by 22% to reach about 200 billion dirhams, with a fixed deposit growth rate of 90%, which reflects strong liquidity.
Strong income
In detail, the Dubai Islamic Bank Group announced yesterday its financial results for the first quarter of this year, with total income reaching 3.559 billion dirhams, compared to 3.407 billion dirhams in the same period last year.
The bank stated in a statement that the group’s net profit for the first quarter of this year amounted to 1.111 billion dirhams, supported by strong gross income, indicating that profitability was achieved in the first quarter, despite the adoption of a deliberate, conservative and cautious approach by the bank to create additional reserve provisions of approximately 1.5 One billion dirhams (compensation with more than one billion dirhams on the Noor Bank purchase) to control the impact of the "Coffid 19" pandemic, if any, in addition to lower oil prices and profit rates.
Assets and deposits
The cost-to-income ratio was 29.8% without the expected synergies from the acquisition of Noor Bank, which will be achieved later in the year, while the return on assets ratio is 2.08%, and the return on equity is 16%.
Net financing and Sukuk investments increased to 216.2 billion dirhams, an increase of 17% from the beginning of the year until the end of last March.
Total assets amounted to 276.4 billion dirhams, an increase of 19% from the beginning of the year to the end of March, while customer deposits increased to 199.9 billion dirhams, an increase of 22% since the beginning of the year, as the ratio of financing to deposits reached 90%.
Inspirational model
"All countries have witnessed exceptional situations over the past few months, where they have joined together to combat the current global pandemic," said Mohammed Ibrahim Al-Shaibani, Director of the Diwan of His Highness the Ruler of Dubai and Chairman of the Board of Directors of Dubai Islamic Bank.
He added that the UAE has provided an inspiring model, and has taken immediate and strict measures to maintain the highest levels of health and safety, in addition to implementing economic reforms to ensure business and services continue to be fully in light of the current environment.
Al-Shaibani pointed out that the UAE banking sector was quick to provide the necessary support to banks and customers, with various relief and stimulus measures amounting to more than $ 70 billion, which was implemented in line with the directives of the regulatory agencies.
In turn, the CEO of Dubai Islamic Bank Group, Dr. Adnan Shilwan, said that «the beginning of this year was somewhat confusing and full of tensions, as the pandemic (Covid 19) resulted in major disturbances that forced us to rethink and adjust our strategies.
He added: «Certainly, the consequences of this will affect the growth rates, or the size of the growth at the very least, as we will focus more now on protecting and sustaining our business and securing long-term revenues for all stakeholders, and achieving this may require making difficult decisions in the short term to ensure things return. To normal as soon as possible. ”
He said that the bank adopted a very conservative approach to providing allocations during the first quarter of 2020 to ensure optimal coverage and protection against any impacts on the quality of assets arising from the current environment, noting that “exceptional gains and ongoing profits allowed in the enhancement of larger allocations for the first, second and third stages added to What was allocated by the senior management with a total value of approximately 1.5 billion dirhams, to protect the financial position of the bank ».
He stated that the shareholders ’approval to increase the foreign ownership percentage to 40% in Dubai Islamic Bank will have a significant positive impact on the bank’s business, mainly by strengthening its position on global and regional indicators.
Safety of employees and dealers
The managing director of Dubai Islamic Bank, Abdullah Al Hamli, said that the bank puts the safety and security of its employees and customers a top priority, indicating that the group has taken a number of measures, ranging from working from home to employees through digital platforms, leading to the promotion of health and safety awareness, and ensuring management Suitable and optimal for branches and express service centers in terms of hygiene and sterilization.
3.55
Billion dirhams, the bank’s total income during the first quarter of 2020.
- Creating additional reserve provisions of about 1.5 billion dirhams.
Net financing and Sukuk increased to 216.2 billion dirhams, an increase of 17% since the beginning of 2020.