Dubai Islamic Bank (DIB) on Wednesday reported a net profit of Dh2.11 billion for the first half of 2020, down 23 per cent year on year from Dh2.73 billion reported in the same period last year.
Amidst a difficult quarter, DIB continues to demonstrate healthy profitability whilst ensuring prudence in growing the balance sheet. Realignment of strategy coupled with a strong pipeline is expected to support financial performance going forward, the bank said in a statement.
“DIB remains focused on delivering its strategic aspirations that are primarily aimed at providing sustainable long-term returns for our valued shareholders,” said Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank.
The bank’s total income reached Dh6.82 billion in 1H2020 whilst net operating revenue grew to Dh4.72 billion. Despite a subdued quarter, the bank continues to deliver broadly stable total income and net operating revenues in comparison to the same period in 2019.
“DIB has been able to quickly adapt to the so-called ‘new normal’ in terms of servicing our customers via our diverse channels including the branch network and digital platforms, with minimal business disruption blended with stringent safety measures,” said Dubai Islamic Bank Managing Director, Abdulla Al Hamli. DIB’s total assets now stands at Dh295 billion, up by 27 per cent from yearend 2019. Net financing & sukuk investments has now increased to Dh237.1 billion in the first half of 2020 from Dh184.2 billion at the end of 2019, a robust rise of 29 per cent. Around Dh20 billion were deployed in new financing growth driven by the realignment of strategy focusing on lower risk sectors, particularly sovereigns. Gross new consumer financing amounted to Dh6.1 billion during the first quarter of 2020.
DIB’s Customer deposits grew to Dh207 billion from Dh164 billion at year-end 2019 reflecting a growth of 26 per cent year to date, reaffirming the bank’s strength to mobilize deposits despite challenging environment. CASA [current and savings account] rose by nearly 57 per cent to Dh85.7 billion, growing from Dh54.6 billion in year-end 2019 and Dh73.4 billion in Q1 2020. This currently represents about 41 per cent of customer deposits. “2020 has turned out to be an exceptionally unusual year for the global economy thus far, due to the lingering uncertainty as to when the pandemic would materially subside. Despite everything, the year has seen us hit new milestones, with both customer financing and deposits crossing the Dh200 billion mark and the balance sheet now approaching the coveted Dh300 billion level,” said Group Chief Executive Officer, Dr. Adnan Chilwan. Operating expenses reached AED 1.47 billion in the first half of 2020 compared to Dh1.2 billion in the same period 2019. —Agencies