DIB first-half profit surges 45`5 to Dh2.7 billion

Dubai Islamic Bank announced on Wednesday a significant surge of 45 per cent to Dh2.7 billion in first-half profitability compared to Dh1.86 billion in the same period last year.

The strong year-on-year growth was driven by rising core revenues and sustained lower impairments, the bank said in a statement.

The bank said gross new financing and sukuk investments saw a remarkable increase by Dh33 billion during the period. Excluding regular repayments and maturities, the bank saw a Dh20 billion growth in the first half that ended on June 30, 2022.

The bank, the largest Islamic bank in the UAE, said it had significantly lower impairments of Dh948 million compared to Dh1.498 billion in previous year, down by 37 per cent year-on-year basis, demonstrating continued improvement in asset quality.

Mohammed Ibrahim Al Shaibani, director-general of His Highness The Ruler’s Court of Dubai and Chairman of DIB, said Dubai’s progressive economic recovery remains on track and DIB’s momentous first half results reflect the improving macroeconomic conditions.

“Global growth has been moderate during the first half of the year due to events that have led to trade and supply chain disruptions. Despite these occurrences, the GCC region and the UAE remain strong building on the economic foundations and reforms implemented earlier.”

Al Shaibani said with a comprehensive and integrated sustainability strategy, the bank is fully aligned towards the vision of the UAE President and is committed towards enhancing the nation’s economic competitiveness, while simultaneously advancing the sustainability objectives of the country.

Despite global headwinds, the bank’s total income rose strongly by seven YoY to more than Dh6.3 billion. 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 chief executive officer, said the significant jump in profit primarily stems from core business growth with net operating revenues rising by 9.0 per cent YoY and four per cent QoQ to Dh5 billion, while a fall in the impairments charges by 37 per cent YoY reflects the fast improving asset quality.

— issacjohn@khaleejtimes.com