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DIB profit rebounds to Dh853m in Q1

Dubai - The UAE’s largest Islamic bank recorded a total income of Dh2.8 billion.

Dubai Islamic Bank reported on Wednesday a strong quarter-on-quarter rebound in net profit to Dh853 million in first quarter, signifying what it termed “a clearly improving economic trend.”

The UAE’s largest Islamic bank said in a statement that its total income reached Dh2.8 billion as the bank continued to display resilience in the given economic scenario.

Profit before impairments rose to Dh1.614 billion compared to Dh1.592 billion in the same period last year while group net profit dropped to Dh853 million year on year.

Operating expenses were lower by 27 per cent year on year at Dh 612 million compared to Dh839 million in Q1 2020, “driven by stringent cost discipline and materializing of substantial integration cost synergies.”

The bank has reduced Impairment charges by a significant margin reflecting “the success of the risk management strategy as well as improving market trend.” While the cost to income ratio improved by 190 bps to 27.5 per cent from 29.4 per cent, customer deposits rose to Dh214 billion from from206 billion, rising by 7.0 per cent year-on-year.

Mohammed Ibrahim Al Shaibani, director-general of His Highness The Ruler’s Court of Dubai and chairman of DIB, said the UAE banking sector continues to remain robust with healthy and well-capitalized balance sheets. “The further extension of the UAE CB’s TESS program will benefit and support the sector and DIB remains aligned to providing support to the domestic economy throughout this recovery period.”

Al Shaibani said DIB continues to deliver strong operating performance with a total income of Dh2.8 billion during the first quarter of 2021 amidst the ongoing market volatilities. “With robust fundamentals in place, DIB is well-positioned to connect with the country’s large-scale economic programmes such as the World Expo, Dubai Industrial Strategy 2030, and the Dubai Urban Master Plan that will support the future growth of the bank and the emirate of Dubai.”

Abdulla Ali Obaid Al Hamli, board member and managing director of DIB, said DIB’s focus on digitisation and optimisation has further strengthened the bank’s position in the sector. “With strong increase year on year on key digital metrics, the bank’s customers are now benefitting from enhanced customer journeys and experiences in a fast-evolving operating environment.”

Al Hamli said the introduction of agile ways of working has led to enhanced efficiencies and productivity. “Digital training and virtual collaborations, constant safety and health measures across our branches, simplification of business processes and enhanced business continuity will ensure the bank to be less vulnerable to business disruptions and maintain a robust growth trajectory,” he said.

— issacjohn@khaleejtimes.com