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Dubai Islamic 2021 net profits up 39% to hit $1.2bn

DUBAI, January 26, 2022

Dubai Islamic Bank, the largest Islamic bank in the UAE, saw a year-on-year (YoY) increase of 39% in net profit to reach AED4,406 million ($1.2 billion) in 2021 vs AED3,160 million in the previous year.

Operating revenues remained stable at AED9,422 million vs AED9,471 million in 2020 following efficient management of cost-of-funds, while Profit before impairments improved by 2% YoY to reach AED6,892 million vs AED6,743 million in 2020.

The bank posted further reduction in operating expense, down by 7% YoY from AED2,728 million to AED2,529 million as efficiency building continues.

Prudent risk management led to significantly lower impairment losses of AED2,448 million, lower by 46% YoY as the bank saw marginal decline in earning assets of 1.5% with net financing and sukuk investments at AED228.5 billion vs AED232.0 billion in 2020. Total assets now stand at AED279.1 billion.

Mohammed Ibrahim Al Shaibani, Director-General of the Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank, said: “As the world economy continues to battle its way through the pandemic, the UAE has stood out as a shining star effectively navigating the various macro challenges as recovery in tourism, hospitality, real estate, the financial markets as well as the general banking sector remains on track. Dubai’s strong economic fundamentals has established the emirate amongst the best cities in the world to lead a prosperous and healthy life.”

“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% YoY 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,” he added.

Dr Adnan Chilwan, Group Chief Executive Officer, said: “Amidst the headwinds that the global economies are still facing, DIB has remained resilient with a remarkable 39% YoY growth in profitability. This solid underlying performance demonstrates the robustness of our strategy which allows us to deliver results irrespective of the prevailing economic conditions and climate.”

“We have built a leaner, agile and overall efficient organization that is ready to capitalize on any opportunity with maximum insulation from environmental hurdles. 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% YoY decline in OPEX. A sector leading cost-income ratio of just under 27% is a clear testament to our intense efforts and focus on generating bank-wide efficiencies,” he added.

“We are committed towards a more sustainable future as we enter a decade of change to support the UAE’s ambitions towards a low-carbon economy. 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.

“We enter the year with a new 5-year strategy that will propel the bank to strengthen and grow the business over the period. Building on the progress that we have made, DIB will transition into a more sustainable business model and create further capacity to generate stronger returns for our shareholders whilst simultaneously ensuring a superior banking experience for all our customers,” Dr Chilwan concluded. – TradeArabia News Service




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