Dubai Islamic Financial institution’s H1-2023 internet revenue hits Dh3.11b in one other enhance for UAE banking sector

Impairment fees got here in barely increased on the 6-month mark, totalling Dh958.6 million s against H1-22’s Dh947.6 million.

“The banking sector continues to stay resilient with rising profitability, sturdy and rising credit score and deposit portfolio supported by the non-public sector, GREs in addition to the retail sector,” stated Mohammed Ibrahim Al Shaibani, Director-Normal of His Highness The Ruler’s Courtroom of Dubai and Chairman of Dubai Islamic Financial institution.

As for DIB’s efficiency particularly, he stated: “A robust set of first-half outcomes with complete revenue reaching Dh9.3 billion – up 49 per cent y-o-y – with rising profitability ratios on ROA (return on property) and RoTE (return on tangible fairness) is a transparent indication of the financial institution’s sturdy monetary place, improved value efficiencies and robust development throughout its shopper and company enterprise portfolios.”

DIB’s steadiness sheet has now touched Dh300 billion, which is a 4 per cent rise year-to-date. The financing portfolio hit Dh190 billion and was ‘strengthened by a surge in our digital gross sales’, in accordance with the CEO.

“DIB’s profitability in the course of the first-half has as soon as once more been notable with internet revenue reaching Dh3.1 billion, up 15 per cent y-o-y, reflecting increased revenues, managed prices and impairments and a eager give attention to executing our medium-term strategic targets,” stated Dr. Adnan Chilwan.

In opposition to the backdrop of upper charges on financial savings, buyer deposits elevated Dh211 billion, with CASA (present accounts, financial savings accounts) making up 39 per cent of the DIB deposit base. “The excessive charge setting has led to funding deposits growing its contribution to complete deposits to 61 per cent from 56 per cent in FY-2022. CASA has proven an bettering pattern q-o-q, rising by Dh1.5 billion,” the financial institution stated.

What is going to please DIB’s administration – and shareholders – is the achieve in internet revenue margin, which is at 3.2 per cent in opposition to 2.8 per cent identical time final 12 months.

“DIB’s gross new financing and sukuk underwriting of Dh45 billion in the course of the quarter was up a substantial 36 per cent in comparison with Dh33 billion in H1-22, fuelled by company and retail lending underpinning DIB’s sturdy market place and enterprise urge for food for development,” stated Dr. Chilwan.

“The fastened revenue e book grew by an astonishing 18 per cent year-to-date and 31 per cent y-o-y reaching Dh61 billion from Dh52 billion in FY-22. The portfolio is primarily invested in extremely rated sovereign devices throughout the area.”