Press Dossier   News Category    Economy    DIB posts record Dh5.6 billion profit for 2022

Khaleej Times, Thursday, Jan 26, 2023 | Rajab 4, 1444

‏DIB posts record Dh5.6 billion profit for 2022

Emirates: Dubai Islamic Bank, the largest Islamic bank in the UAE, posted on Wednesday a record-breaking annual net profit of Dh5.6 billion for 2022, up 26 per cent year-on-year.

“The strong growth was driven by rising core revenues, prudent cost management and sustained lower impairments,” the bank said in a statement.

DIB recorded a 20 per cent rise in total income year-on-year to Dh14 billion and proposed 30 per cent dividend subject to shareholder approval.

Net financing and sukuk investments grew by five per cent YoY to Dh238 billion as the bank attained nearly Dh63 billion in annual gross new underwriting and sukuk versus Dh50 billion in FY2021. Net operating revenues showed a robust 11 per cent YoY increase and 8.0 per cent quarter-on-quarter surge to reach Dh10.467 billion while net operating profit recorded a strong increase of 12 per cent YoY and 10 per cent QoQ to Dh7.734 billion.

Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank, said the UAE continued to attain economic growth and expansion amidst a turbulent year withstanding the impact of geopolitical conflicts and higher global inflation depicting its robust financial and monetary policies, strong domestic recovery and fiscal surpluses.

“These robust economic policies have strengthened the banking sector and supported the growth of the domestic financial markets which have exhibited higher trading activities and increased foreign inflows.”

Dr Adnan Chilwan, group chief executive officer, said the spectacular annual profitability during FY2022 was the highest-ever net income in the bank’s history.

“This beat depicts our robust strategy and the management’s efforts and commitment to enhancing shareholders' value.”

“Core banking profitability metrics and ratios were also solid with net operating revenue up 11 per cent YoY due to a robust balance sheet structure,” said Chilwan.

In 2022, DIB’s customer deposits stood at Dh199 billion, down 3.5 per cent YoY, with CASA now standing at Dh87 billion, “comfortably placed at 44 per cent of deposits.” On a QoQ basis, DIB has managed to increase its deposits during FY2022 by seven per cent, driven by a 12 per cent increase in CASA deposits.

Liquidity coverage ratio at 150 per cent, rose from 136 per cent FY 2021, remains above regulatory requirements, depicting a strong liquidity position, the bank said. The bank’s Impairment charges continued to decline, registering Dh 2.103 billion against Dh2.448 billion in the previous year.

Consumer banking portfolio surged five per cent to Dh53 billion from Dh 51 billion in FY 2021. The portfolio’s total new underwriting of Dh18 billion during FY 2022 is up 29 per cent YoY, mainly driven by personal and home finance accounts.

“The portfolio expanded by net Dh2.7 billion, underpinning the bank’s solid retail franchise. The segment is also actively deploying financing in the SME sector,” the bank said.

The corporate banking portfolio now stands at Dh142 billion with government and service sectors contributing 33 per cent to this portfolio. New wholesale lending for FY 2022 registered Dh 31 billion up by a substantial 40 per cent YoY from Dh 22 billion last year driven mainly by government-related entities (GREs), said the bank.

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