Dubai Islamic Bank 9M-2022 net profit crosses Dh4b, impairment charges down 33%

Dubai: Dubai Islamic Bank’s net profit at the end of the first nine months of 2022 crossed the Dh4 billion mark, coming in at Dh4.1 billion against Dh3.06 billion a year ago. The gain, DIB said, was down to rising ‘core’ revenues and ‘sustained lower impairments.

Net profit margin was up to 2.9 per cent, while total income for these three quarters totalled Dh9.83 billion, up 10 per cent. 

"The bank’s incredible performance to date with net profits rising by 34 per cent y-o-y to reach Dh4.1 billion has been the highest ever nine months' performance in the bank’s history," said Dr. Adnan Chilwan, Group CEO.

Thus, DIB became the second bank to report Dh4 billion plus profit numbers after ADCB on Monday afternoon issued its nine-month results. Other bank results expected this week are likely to show the same trajectory on profit and reduced impairment costs.

Solid returns on all fronts

“The bank’s third quarter profitability metrics and ratios have been remarkable with 10 per cent y-o-y growth in total income reaching nearly Dh10 billion and return on assets 2 per cent (+50 bps year-to-date) and RoTE 16.8 per cent (+380 bps YTD) surpassing our full year guidance,” said Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of DIB. “And exhibiting its dynamic capabilities despite the on-going subdued global economic environment.”

Sharp cut to impairments

Impairment charges came in lower by 33 per cent year-on-year, and that too has resonated well on the bottom-line. "DIB continues to demonstrate resilience with strong capital and liquidity ratios which are expected to remain robust over the upcoming period," said Chilwan. "This is despite the CBUAE withdrawal of the liquidity schemes."

Key numbers for DIB