Dubai Islamic Bank posts 39% rise in net profit for 2021

Dubai Islamic Bank recorded a 39 per cent year-on-year increase in net profit for 2021, totaling Dhs4.406bn versus Dhs3.16bn earned during a year-earlier period.

Last year, operating revenues declined to Dhs9.42bn versus Dhs9.47bn in 2020, while operating expense pared by 7 per cent from Dhs2.72bn to Dhs2.52bn.

Profit before impairments improved 2 per cent y-o-y to reach Dhs6.89bn in 2021 compared to Dhs6.74bn in 2020. Net financing and sukuk investments stood at Dhs228.5bn compared to Dhs232bn in 2020.

Dubai Islamic Bank Full Year 2021 Group Financial Results, read morehttps://t.co/iibvSAmHB9 pic.twitter.com/eBDlGoNQL5

— Dubai Islamic Bank (@DIBtoday) January 26, 2022

Total assets equalled Dhs279.1bn while customer deposits stood at Dhs205.8bn with CASA (current and saving accounts) increasing by 4.4 per cent to over Dhs90bn. Meanwhile, return on assets stood at 1.5 per cent, return on equity at 11.8 per cent while total equity equalled Dhs41.5bn.

Mohammed Ibrahim Al Shaibani, chairman of Dubai Islamic Bank, said: “Despite the on-going global market uncertainties, the UAE banking sector remains robust with rising profitability and strong capitalization. DIB has successfully navigated through the ongoing economic environment generating a significant 39 per cent y-o-y growth in net profits. · The bank remains on solid ground moving into the new year as we continue to unearth business opportunities in an improving local economic climate to deliver solid returns to all our valued shareholders whilst maintaining the highest standards of governance across the bank.

We enter 2022 with a new 5yr strategy that will transition DIB into a sustainable business by being leaner, agile & more efficient. DIB saw AED 35bio of new financing with a 39% growth to achieve AED 4.4bio in profit, despite pandemic & low interest rates https://t.co/AqR7uO2p8x pic.twitter.com/VAv1e4mLS7

— Dr. Adnan Chilwan (@AdnanChilwan) January 26, 2022

“Amidst the headwinds that the global economies are still facing, DIB has remained resilient with a remarkable 39 per cent y-o-y growth in profitability. We have built a leaner, agile and overall efficient organisation that is ready to capitalise on any opportunity with maximum insulation from environmental hurdles,” adds Dr. Adnan Chilwan group CEO.

“This has allowed us to generate higher profitability despite a low rate environment and large repayments that kept dampened the earning assets growth. Cost management over the years has remained a key strength for the bank and 2021 proved no different with a 7 per cent YoY decline in OPEX. Our ESG roadmap is set to unlock further efficiencies within the business as we integrate sustainability and climate risk into our operating models with the aim to ensure that the bank is safeguarded against the biggest environmental risks that are impacting the global economies today.”