Dubai: Dubai Islamic Bank (DIB), on Wednesday reported a group net profit of Dh2.44 billion, up 14 per cent compared with Dh2.14 billion for the same period in 2017.
Bank’s total income rose to Dh5.57 billion, up 15 per cent compared with Dh4.86 billion for the same period in 2017. Net operating revenue jumped to Dh4.03 billion, up 10 per cent year on year.
“2018 so far is panning out as planned with expansion across all businesses leading to core income growth as the key performance indicators remain aligned with the guidance,” said Dubai Islamic Bank Group Chief Executive Officer, Dr Adnan Chilwan.
Income from Islamic financing and investing transactions increased by 19 per cent to Dh4.41 billion from Dh3.71 billion for the same period in 2017. Net revenue for the first half of the year amounted to Dh4.03 billion, an increase of 10 per cent compared with Dh3.67 billion in the same period of 2017. Commissions and fees increased by 14 per cent in the first half of 2018 reaching to Dh781 million.
Operating expenses were maintained at Dh1.18 billion for the period ending June 30, 2018 compared to Dh1.16 billion in the same period in 2017.
Net financing assets grew to Dh141.8 billion for the first half of 2018 up 6 per cent from Dh133.3 billion at the end of 2017. Corporate banking financing assets grew at nearly 10 per cent to Dh98 billion while consumer business remained steady at Dh40 billion, supported by new financing of over Dh1.2 billion. Commercial real estate concentration remained at around 19 per cent.
Customer deposits for the first half of 2018 increased by 3 per cent Dh151 billion from Dh147 billion at the yearend 2017. Current and savings account (CASA) component increased to Dh59.2 billion as of June 30, 2018, as the drive to enhance the low-cost deposit base continues. Financing to deposit ratio stood at 94 per cent as of June 30, 2018.
Non-performing financing ratio and impaired financing ratio improved to 3.3 per cent and 3.2 per cent, respectively, highlighting the quality of new underwriting. Cash coverage for the period ending June 30, 2018 stood at 120 per cent compared with 118 per cent at the end of 2017. Overall coverage ratio including collateral at discounted value reached 158 per cent compared to 157 per cent at the end of 2017.
