Dubai Islamic Bank second quarter net profit declines

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Dubai

Dubai Islamic Bank’s (DIB) second-quarter net profit fell 27 percent from a year ago as net impairment charges jumped 68 percent, though they eased from last quarter. DIB posted a net profit attributable to owners of 1.01 billion dirhams ($275 million) for the quarter. Its net impairment charges were 637 million dirhams, much lower than the 1.48 billion dirhams booked in the first quarter, which included 818 million dirhams in extraordinary charges. Several banks in the region have increased provisions in anticipation of the coronavirus pandemic’s impact on the credit market. The bank said its capital adequacy ratio stood at 16.7 percent at the end of June, slightly above 16.5 percent last quarter. “In a bid to realign our strategy and build on our strength in the domestic market, the quarter saw a strong advancement in our financing book of 11 percent quarter-on-quarter, driven by our calculated focus on sovereign and related businesses,” CEO Adnan Chilwan said in a statement. He said DIB had begun integrating Noor Bank.—Arab News

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