Dubai Islamic Bank, DIB, today announced its net profit reached AED 2.12 billion during the first half of the year, as it continues to demonstrate healthy profitability whilst ensuring prudence in growing the balance sheet.

According to financial results for the period ending June 30th, 2020, the bank’s total income reached AED 6.82 billion whilst net operating revenue grew to AED 4.72 billion. Despite a subdued quarter, the bank continues to deliver broadly stable total income and net operating revenues in comparison to the same period in 2019.

The net financing & Sukuk investments now increased to AED 237.1 billion in H1 2020 from AED 184.2 billion at the end of 2019, a robust rise of 29 percent. Around AED 20 billion were deployed in new financing growth driven by the realignment of a strategy focusing on lower-risk sectors, particularly sovereigns. Gross new consumer financing amounted to AED 6.1 bn during the period.

Customer deposits grew to AED 207 billion from AED 164 billion at year-end 2019 reflecting a growth of 26 percent YTD, reaffirming the bank’s strength to mobilise deposits despite the challenging environment.

Capital adequacy ratios remain healthy with overall, Capital Adequacy Ratio, CAR, at 16.7 percent and Common Equity Tier 1 Capital, CET 1 ratio at 12.3 percent respectively. Despite the relaxed capital requirements due to COVID-19 outbreak, the bank continues to have healthy capital ratios well above the regulatory threshold.

Commenting on financial results, Mohammed Ibrahim Al Shaibani, Chairman of Dubai Islamic Bank, said, ” The new UAE government structure, along with more than AED 6 billion Dubai economic stimulus measures that were unveiled by the leadership, is designed to bolster the market and boost investor confidence during and post COVID-19 era. As the pandemic is gradually contained, Dubai and the UAE’s sustainable business growth models remain on track to lead the economic recovery in the region.” Abdulla Al Hamli, Dubai Islamic Bank Managing Director, said,” The gradual return of economic activities is a manifestation of Dubai’s capabilities to withstand and address any significant global economic shocks. DIB has been able to quickly adapt to the so-called “new normal” in terms of servicing our customers via our diverse channels including the branch network and digital platforms, with minimal business disruption blended with stringent safety measures.” Dr. Adnan Chilwan, Dubai Islamic Bank Group Chief Executive Officer, said,” 2020 has turned out to be an exceptionally unusual year for the global economy thus far, due to the lingering uncertainty as to when the pandemic would materially subside. Despite everything, the year has seen us hit new milestones, with both customer financing and deposits crossing the AED 200 billion mark and the balance sheet now approaching the coveted AED 300 billion level. Whilst monitoring the situation closely, we have managed to sustain our overall business performance, thus resulting in quality growth, healthy capitalisation and ample liquidity.”