Home Industry Finance DIB’s Q2 net profit surges to $844m on higher revenue The Shariah-compliant bank’s total income reached Dhs9.3bn during the quarter, up 49 per cent from Dhs6.22bn the same period a year ago by Kudakwashe Muzoriwa July 26, 2023 Image courtesy: WAM Dubai Islamic Bank (DIB), the UAE’s biggest Islamic bank by assets, said its second-quarter net profit surged by 15 per cent year-on-year (YoY) to reach $844m (Dhs3.1bn) compared to Dhs2.7bn for the same period a year ago. The Shariah-compliant bank’s total income reached Dhs9.3bn during the quarter, up 49 per cent from Dhs6.22bn the same period a year earlier, thanks to strong income from financing assets. “The banking sector continues to remain resilient with rising profitability, strong and growing credit and deposit portfolio supported by the private sector, government-related entities as well as the retail sector,” said Mohammed Ibrahim Al Shaibani, director-general of H.H. The Ruler’s Court of Dubai and chairman of DIB. The banking group’s net operating revenues reached Dhs5.6bn in the three months to June 30, an 11 per cent YoY increase compared to Dhs5.04bn last year while operating profit stood at Dhs4.1bn, a solid 12 per cent YoY increase compared to Dhs3.7bn in 1H 2022. Dubai Islamic Bank First Half 2023 Group Financial Results, read more https://t.co/001gm1pjqT pic.twitter.com/Jt2LCZTmbI — Dubai Islamic Bank (@DIBtoday) July 26, 2023 Dr Adnan Chilwan, DIB’s group CEO said the bank’s profitability during the first half of the year reflects higher revenues, control costs and impairments and a keen focus on executing our medium-term strategic objectives. DIB’s balance sheet expanded by 4 per cent year-to-date (YTD) to Dhs300bn while customer deposits settled at Dhs211bn with CASA comprising 39 per cent of the bank’s deposit base. “The high-rate environment has led to investment deposits increasing its contribution to total deposits to 61 per cent from 56 per cent in 2022,” the bank said in a bourse filing adding that CASA has shown an improving trend quarter-on-quarter growing by Dhs1.5bn. The bank’s net financing and Sukuk investments stood at Dhs251bn, up 5.3 per cent YTD compared to Dhs238bn during the same period last year. DIB’s net financing assets were up by 2 per cent YTD while the Sukuk investments portfolio, another key focus of the bank, expanded by nearly 18 per cent YTD to reach Dhs61bn. DIB attributed the growth in its net financing activities to both corporate and retail financing, which underpins the bank’s strong market position and business appetite for growth. The group’s fixed income portfolio has reached Dhs55bn, a 6 per cent YTD as the bank continues to invest primarily in highly rated sovereign Sukuk instruments. DIB augments customer experience Meanwhile, DIB unveiled a new digital banking platform in June. DIB ‘alt’, as the banking platform is known, integrates the bank’s extensive range of digital offerings and capabilities into one platform, providing customers with a seamless and hassle-free banking experience. The platform brings together more than 135 digital services via the DIB Mobile App, Online Banking, WhatsApp, and ATMs. It enables customers to open a bank account in minutes, apply for personal finance or credit cards, remit money locally or internationally and make payments. The bank’s Call Center Unit launched the “Premium Service for Aayan & Wajaha Customers” – wherein a service team dedicated to offering the very best across customer service and experiences. The premium service is an initiative aligned with the bank’s strategic vision of becoming a stronger customer-centric organisation, making customers’ journey with the bank more enriching. Read: UAE banks reap the benefits of an economic boom Tags DIB alt Digital Banking Dubai Islamic Bank Sukuk 0 Comments You might also like Global outstanding sukuk market hits $823bn in Q3 2023 UAE green bonds, sukuk issuance hit Dhs15bn, says SCA DFSA scraps regulatory fees on ESG listings on Nasdaq Dubai Saudi Real Estate Refinance Company wraps up SAR3.5bn sukuk issuance