Dubai Islamic Bank net surges 26%
Bank records its best year ever; proposes 30% dividend
The Dubai Islamic Bank pulled out a 26 per cent increase in net profit to Dh5.55 billion, against Dh4.4 billion a year ago. The increase was brought on rising ‘core revenues’ and ‘prudent’ cost management. The bank has proposed a 30 per cent dividend (or 30 fils a share).
The DIB numbers could be a precursor to a strong set of upcoming results from UAE’s leading banks, against a backdrop of higher interest rate, solid corporate and retail lending, and drastically lowered impairment charges.
“DIB attained its strongest year in its history with robust growth in profitability as total income reached Dh14 billion, a 20 per cent year-on-year growth and balance-sheet now at Dh288 billion witnessing a 5-year CAGR of 7 per cent,” said Mohammad Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of DIB.
The bank has called for a general assembly on March 15 to get the go-ahead on the dividend proposal.
Going ‘tactical’
“Given the rate environment and surplus liquidity, we made a deliberate tactical move focused on quality and structural sourcing rather than growth only,” said Dr. Adnan Chilwan, Group CEO. “This led us to support large corporate and public sector entities in adjusting and aligning their balance-sheet in the new medium-term environment; a winning combination for customers, bank and economy.
“We continue to maintain firm control on expenses leading us to deliver to the best cost to income ratio in the market at 26.1 per cent while maintaining head room to elevate the bank’s system upgrades.”
Cracking down on NPF
During the year, DIB’s NPF declined a ‘healthy’ 6 per cent to Dh12.98 billion from Dh13.78 billion. “The main improvement came from DIB’s core NPF portfolio, which improved by 4 per cent while (Abu Dhabi based hospital operator) NMC and NOOR POCI (which constitute 17 per cent of NPFs) both declined a combined 14%, due to ongoing recoveries,” DIB said.
According to the CEO Dr. Chilwan, “Liquidity remains solid primarily through deepened relationship with the government, public and large corporates. This current liquidity profile provides us with the impetus for growth in 2023.”