Increased 19% q/q driven by careful cost management and lower impairment provisions

3.1 billion dirhams, net profit of "Dubai Islamic" in 9 months

  • The bank's balance sheet has maintained its stability, with total assets of 289.4 billion dirhams.

    From the source

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Dubai Islamic Bank yesterday announced its financial results for the period ending on September 30, 2021, achieving a net profit of 3.1 billion dirhams during the first nine months of this year, an increase of 19% on a quarterly basis, driven by the thoughtful management of costs and the reduction of provisions for impairment.

The bank stated, in a statement, that the total income recorded a growth of 4% on a quarterly basis, reaching 8.9 billion dirhams since the beginning of this year until now, while the net operating income achieved a growth of 5% on a quarterly basis, and 3% on an annual basis. , to reach 7.1 billion dirhams since the beginning of the year.

Expenses and profits

Operating expenses continued to decrease by 12% year-on-year, from AED 2,134 billion to AED 1.874 billion.

Profits before impairment provisions amounted to AED 5.275 billion, an increase of 7% on a quarterly basis and 10% on an annual basis, while impairment losses decreased by 10% on a quarterly basis and 18% on an annual basis, to reach AED 2.174 billion.

assets and deposits

Profitable assets maintained their stability, as net financing and sukuk investments amounted to about 232.7 billion dirhams, despite the large advance payments to companies.

In contrast, the total new financing amounted to about 30 billion dirhams since the beginning of this year until now.

Customers' deposits have improved since the beginning of the year by 4%, to reach 214.1 billion dirhams, while liquidity maintained its strength with the financing to deposits ratio reaching 90%, and the liquidity coverage ratio to 160%.

budget

The balance sheet has also maintained its stability, with total assets currently amounting to AED 289.4 billion.

Return on assets and return on equity improved on a quarterly basis at 1.4% (up 10 basis points sequentially) and 10.9% (up 50 basis points sequentially) respectively.

correct path

Director of the Court of His Highness the Ruler of Dubai and Chairman of the Board of Directors of Dubai Islamic Bank, Mohammed Ibrahim Al Shaibani, said: "The economic recovery of the UAE is proceeding on the right track, as the non-oil sectors are witnessing strong performance, against the background of the improvement in demand for commercial activities, and the increase in consumer confidence, supported by high vaccination rates among the local population.

He added, "The successful opening of (Expo 2020 Dubai) shed light on the country's ability to recover quickly from the global pandemic."

Al Shaibani pointed out that the banking sector in the UAE has maintained its resilience and flexibility in light of good cash liquidity, strong capital reserves, and improved profitability since the beginning of this year.

pivot factor

In turn, Board Member and Managing Director of Dubai Islamic Bank, Abdullah Ali Obaid Al Hamli, said that "the many structural reforms in the field of employment and residency laws have made the UAE among the best preferred countries to live in the world."

He added, "Dubai is heading with the adoption of strategic economic programs in conjunction with the celebration of the country's golden jubilee, to achieve the fastest pace of economic recovery from the consequences of the pandemic compared to any city or country around the world."

Al Hamli stressed that “the sources of funding and liquidity still constitute a pivotal factor in the strong growth of the bank, as customer deposits have witnessed a strong growth of 4% since the beginning of this year, largely supported by the business of corporate banking.”

• 8.9 billion dirhams, the total income of the bank during the first 9 months of 2021.

recovery speeds up

Dr. Adnan Chilwan, Group CEO of Dubai Islamic Bank, said: “The recovery momentum continues to accelerate in the UAE, especially after regulatory measures backed by economic incentives of more than $100 billion, high oil prices, and achieving the desired goals of the strong vaccination campaign at the local level. ».

He added, "In the same positive context, the course of Dubai Islamic Bank's business reflects the pattern of the prevailing trend in the country, where the bank achieved a strong quarterly growth in total income, and achieved an increase in net profits of 19% over the last quarter, and this comes against the background of continued optimism in the business environment, and the successful opening of the World Expo.”

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