Dubai Islamic Bank's H1-2022 net profit at Dh2.7b as impairment charges dip

Dubai: The Dubai Islamic Bank recorded a net income of Dh5.03 billion for the first six months of 2022, against Dh4.62 billion a year ago. This was helped by a solid performance in the April-June phase, when net income weighed in with Dh2.57 billion (against Dh2.40 in H1-21).

In the first six months, one of the world’s biggest Islamic banking institutions, saw impairment charges trimmed to Dh947.62 million, from Dh1.49 billion. DIB's net profit for H1-22 came to Dh2.7 billion against Dh1.86 billion a year ago, which works out to 45 per cent up.

The bank recorded Dh47.24 million as gains from selling investment properties (Dh9.56 million in H1-21), while overall income from its real estate portfolio came to Dh60.75 million during the six months. DIB’s numbers mirror a solid first-half for the UAE banking sector, with Mashreq and ADIB both reporting net profit at well over Dh1 billion. A slew of bank results are expected in the coming days, including from Emirates NBD and FAB.

"Despite global headwinds, the bank’s total income rose strongly by 7 per cent year-on-year to more than Dh6.3 billion," said Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank. "This clearly demonstrates the bank’s robust fundamentals and the strength of the balance sheet to navigate the uncertainties in the market.

- Mohammed Ibrahim Al Shaibani of Dubai Islamic Bank

Financing ways

DIB's net financing and sukuk investments 'expanded strongly' by around 6 per cent in the year-to-date to Dh241 billion and 'supported by increasing volumes across all businesses'. "The first 6 months have already seen new gross financing and sukuk investments to the tune of Dh33 billion, and normal repayments and early settlements aside, we are left with Dh13 billion of growth, which is remarkable achievement," said Dr. Adnan Chilwan, Group CEO.

 - Dr. Adnan Chilwan, Group CEO