Dubai: The Dubai Islamic Bank recorded Dh13.14 billion in total income for 2020, a slight decline compared to Dh13.68 billion the year before.
This was despite “significantly subdued economic activity” and “clearly highlighting the depth and diversity of the bank’s business,” the bank - one of the world's biggest in Islamic banking - said in a statement.
It has proposed a dividend of 20 per cent subject to shareholder approval.
But there was a 38 per cent drop in group-wide net profit to Dh3.16 billion, which the bank said was a result of “deliberate and prudent approach” to making provisions. This ensures DIB will be “protected against any unforeseen scenarios.”
DIB provided relief measures of nearly Dh9 billion to over 54,000 customers in retail and corporate categories under the UAE Central Bank's TESS programme announced after the pandemic hit.
Dh289.6billionDIB's total assets as of end 2020 compared to Dh231.8 billion in 2019
Noor Bank integration
The NPF (non-performing financing) ratio was at 5.7 per cent, which is "in line with the market given the current conditions". But it drops to 4.3 per cent if one excludes the "credit impaired portfolio acquired from Noor Bank and a one-off isolated corporate exposure".
"The successful early completion of our integration with Noor Bank amidst unfamiliar working conditions is a testament to the capabilities of executing our strategic aspirations irrespective of testing economic conditions," said Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai Chairman of DIB. "The efficient coordination amongst all key stakeholders resulted into one of the fastest integration in the region."
- Deposits up by 25% to Dh205.9 billion
- Noor Bank integration completed well ahead of schedule
- Liquidity remains healthy with financing-to-deposit ratio of 96%
- Operating revenue up by 2% year-on-year to Dh9.5 billion