Dubai Islamic Bank (DFM: DIB), the largest Islamic bank in the UAE, today announced its results for the period ending June 30, 2019.

H1 2019 Highlights:

Consistent rise in profitability (H1’ 19 vs H1’ 18)

• Group Net Profit increased to AED 2,753 million, up 13% compared to AED 2,441 million.
• Total Income increased to AED 6,982 million, up by 25% compared to AED 5,577 million.
• Net Operating Revenue grew to AED 4,699 million, up 16% compared to AED 4,036 million.
• Operating expenses stable at AED 1,201 million vs AED 1,187 million in H1 2018.
• Net operating profit before impairment charges grew by 23% to AED 3,498 million.
• Cost to income ratio continues to improve at 27.8% compared to 28.3% at the end of 2018.
• Net Profit Margin at 3.13% in line with guidance for the year.

Employing strength of balance sheet on growing core businesses:

• Net Financing & Sukuk investments rose to AED 182.5 billion up by 3.7%, compared to AED 175.9 billion at the end of 2018.
• Total Assets stood at AED 228.2 billion, up by 2.0%, versus AED 223.7 billion at the end of 2018.

Stable asset quality:

• NPF ratio stable at 3.5% with cash coverage ratio is at 108%.
• Overall coverage, including collateral at discounted value, stands at 140%.

Strong Liquidity and Funding position:

• Customer deposits increased to AED 156.9 billion from AED 155.7 billion in end of 2018.
• CASA deposit increased by 6% year to date to reach at AED 57.2 billion as of H1 2019.
• Financing to deposit ratio stood at 96%.

Well capitalized to support business growth :

• Capital adequacy ratio is at 17.5%, as against 13.50% minimum required.
• CET 1 is at 12.9%, as against minimum required of 10.00%, providing significant room for growth under the new Basel III regime.
• ROA increased to 2.46% and ROE at 18.5%, both in line with guidance.

Management’s comments for the period ending June 30, 2019:

His Excellency Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank, said:

• With the constant evolution of an efficient and robust governance model and progressive approach to infrastructure development, the UAE now ranks amongst the leading global markets for business and economic competitiveness.
• The opening up of key economic sectors for foreign ownership will lead to increased investment and higher employment opportunities for the domestic economy as the country retains its position as an attractive place to do business.
• With double digit rise in profitability, the bank remains in a strong position to capture opportunities in the market whilst delivering robust growth and returns for all stakeholders.

Dubai Islamic Bank Managing Director, Abdulla Al Hamli, said:

• We continue to sustain the growth of our balance sheet evidenced by the consistent increasing market share of DIB in the industry over the past few years.
• The progress on digital ambitions continues with the launch of significantly enhanced products and services to the modern customer leading to a more personalized and secured banking journey that can be experienced anytime and anywhere.

Dubai Islamic Bank Group Chief Executive Officer, Dr. Adnan Chilwan, said:

• We have built a dynamic, flexible and adaptive organization that can sustain business and growth in any kind of economic environment.
• Whilst we continue to show robust balance sheet growth, profitability is and will always remain the key area of focus for DIB, evidenced by ROA at 2.46% and ROE at 18.5%, which is amongst the strongest in the market.
• Fostering a culture of growth in the organization has been a key factor in the successful contribution from all businesses across wholesale and consumer, both now being ably supported by digital enhancements that have significantly strengthened our delivery and servicing capabilities across the entire breadth of our diverse customers base.
• With more than USD $ 6 billion of sukuk issuances and nearly USD $ 11 billion in syndicated deals since the start of the year, the bank’s franchise continue to dominate the corporates and sovereigns business in the international Islamic capital market space.
• The discipline in managing our costs and focusing on efficiency building has yielded very strong results with net profit growing by 13% YoY to reach AED 2.7 bn. Our cost to income is now at a historical low of 27.8%.
• Our improving asset quality over the years is a result of the bank’s prudent and conservative approach to underwriting with quality credit building rather than balance sheet expansion at the core of the growth strategy.