Home Industry Finance Dubai Islamic Bank net profit rises 45% to Dhs2.7bn in H1 2022 Gross new financing and sukuk investments saw a significant increase of Dhs33bn during the period by Neesha Salian July 29, 2022 Dubai Islamic Bank has announced substantial growth in group net profit of 45 per cent year-on-year ( YoY ) to Dhs2.7bn compared to Dhs1.86bn made in the same period last year. The strong growth was driven by rising core revenues and sustained lower impairments. Gross new financing and sukuk investments saw an increase of Dhs33bn during the period. Excluding regular repayments and maturities, the bank saw a significant Dhs20bn growth. Net operating revenues showed robust growth of 9 per cent YoY and 4 per cent sequentially to reach Dhs5.039bn. Total income reached Dhs6.26bn compared to Dhs5.84bn, substantially up by 7 per cent YoY and 8 per cent sequentially. Net operating profit stood at Dhs3.68bn, an increase of 9 per cent compared to Dhs3,38bn in H1 2021. The group’s balance sheet remained at Dhs282.2bn, up 1 per cent YTD. Customer deposits are now at Dhs202.2bn with current account savings accounts, comprising 44 per cent of the deposit base. #Dubai Islamic Bank announces H1 results – Group Net Profit, increased 45% YoY to reach to AED 2.7 billion. – Total income increased by more than 7% YoY to AED 6.3 billion. @DIBtoday pic.twitter.com/NBVrBjinHZ — Dubai Media Office (@DXBMediaOffice) July 27, 2022 Other highlights include: Significantly lower impairments of Dhs948 million against Dhs1.49bn in 2021, down by 37 per cent YoY, demonstrated continued improvement in asset quality. Non-performing financing (NPF) ratio continued its downward momentum now at 6.5 per cent lower by 30bps YTD compared to 6.8 per cent in 2021. Cost to income ratio was amongst the best at 26.9 per cent, lower by 140 basis points (bps) sequentially. Liquidity remained healthy with a finance-to-deposit ratio of 96 per cent and liquidity coverage ratio of 117 per cent. Commenting on the performance, Mohammed Ibrahim Al Shaibani, chairman of Dubai Islamic Bank, said: “Despite global headwinds, the bank’s total income rose strongly by 7 per cent YoY to more than Dhs6.3bn. This clearly demonstrates the bank’s robust fundamentals and the strength of the balance sheet to navigate the uncertainties in the market.” Dr Adnan Chilwan, group CEO, added: “Our net financing and sukuk investments expanded strongly by nearly 6 per cent YTD to reach Dhs241bn supported by increasing volumes across all businesses. The first six months have already seen new gross financing and sukuk investments to the tune of Dhs33bn, and normal repayments and early settlements aside, we are left with Dhs13bn of growth, which is a remarkable achievement. “The bank’s asset quality has continued to improve sequentially over the past few quarters with a 30bps YTD improvement in NPF ratio which now stands at 6.5 per cent. The bank remains persistent in its efforts to strengthen credit underwriting and manage asset quality with a proactive and cautious approach to growth amidst the current operating environment. Consequently, the declining cost of risk now down to 76bps further evidences the success of the strategy.” Tags Banking Dubai Islamic Bank H1 2022 financial results 0 Comments You might also like How banks are leveraging the power of GenAI Cover story: How regtech tools can help UAE-based entities enhance compliance and security UAE: Abu Dhabi Islamic Bank successfully issues $500m green senior sukuk Mashreq bank’s net profit rises 122% in first 9 months of 2023