It recorded a strong growth in customer deposits by 6% to reach 218 billion dirhams

«Dubai Islamic»: 1.9 billion dirhams net half-profit

• The careful management of costs has led to a significant reduction in the Bank's operating expenses.

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Dubai Islamic, the largest Islamic bank in the UAE and the second largest Islamic bank in the world, announced yesterday its financial results for the period ending on June 30, 2021, achieving a net profit growth of 18% on a quarterly basis, to reach AED 1.9 billion. And a strong growth in customer deposits by 6% to reach AED 218.3 billion.

According to these results, the total income witnessed a growth of 5% on a quarterly basis, to reach AED 5.8 billion since the beginning of this year to date, despite the adverse challenges, while the net operating income achieved a strong growth of 8% on a quarterly basis. , to now reach 4.6 billion dirhams since the beginning of the year, supported by low-cost liquidity.

The financial results showed that the thoughtful management of costs led to a significant decrease in operating expenses by 15% on an annual basis, from 1.47 billion dirhams to 1.25 billion dirhams, at a time when impairment losses decreased by 29% compared to the same period last year, which indicates On improving credit quality.

In turn, net profit has grown by 18% on a quarterly basis, to reach AED 1.9 billion year-to-date.

The bank attributed this to strong cost management, continued income growth from core businesses, and reduction in impairment provisions.

Profitable assets maintained their stability, as net financing and sukuk investments amounted to about 233 billion dirhams, despite the large advance payments made to companies.

The results also revealed a strong growth in customer deposits by 6% to reach 218.3 billion dirhams, which supported the growth of the balance sheet by 1.5%, to reach 293.7 billion dirhams, while the current and savings accounts rate amounted to 41% of the deposit base. Enhanced liquidity strength, with the financing to deposit ratio reaching 89%, and the liquidity coverage ratio reaching 152%.

For its part, capital ratios remained above minimum regulatory requirements, with a common Tier 1 capital ratio of 12.3% and a capital adequacy ratio of 17%.

Director of the Court of His Highness the Ruler of Dubai and Chairman of the Board of Directors of Dubai Islamic Bank, Muhammad Ibrahim Al Shaibani, said that with the start of the gradual recovery of the global economy from the consequences of the “Covid-19” pandemic, the Gulf Cooperation Council region began witnessing a gradual return to normal life, pointing out that the country is witnessing a gradual return to normal life. The UAE has been exceptionally distinguished in the way it has managed the pandemic since its inception.

He added: “Consumers and investors expressed great confidence in the various measures and measures taken by the state to address the pandemic.

We at (Dubai Islamic) remain optimistic about the positive expectations for the coming months, and we look forward to playing a major and important role in supporting the major events that the UAE will witness this year.”

Al Shaibani continued: “The primary revenue generation sources at Dubai Islamic Bank have continued their positive trends since the pandemic reached its climax, achieving 5.8 billion dirhams during the first half of 2021, an increase of 5% compared to the previous quarter, which clearly indicates the bank’s flexibility, and its strong strategy. Through which he was able to face the difficult and changing environment.

For his part, Dr. Adnan Chilwan, Group CEO of Dubai Islamic Bank, said that the bank's profitability maintained its strength despite the challenges and difficulties we witnessed during the past 18 months, pointing out that the bank achieved net profits of 1.9 billion dirhams during the first half of 2021. He added: “Finance and liquidity remain a pivotal factor in the bank’s strong growth, as customer deposits have grown by 6% year-to-date, reaching now to AED218 billion.

The liquidity coverage ratio remained well above the minimum regulatory requirements at 152%, and customer deposits still constitute the main source of funding for the bank, representing more than 70% of the total funding base.

• Net financing and investments of sukuk amounted to about 233 billion dirhams.

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