Media ININ Economy We Trust
The net profit of the Dubai Islamic Bank Group recorded a record growth during 2022, by 26% on an annual basis, to reach 5.55 billion dirhams, compared to 4.40 billion dirhams for the same period last year. This strong growth comes on the back of higher core revenues, prudent cost management and continued decline in impairment provisions. Total income amounted to 14.1 billion dirhams compared to 11.79 billion dirhams, recording a growth of 20% on an annual basis and 17% on a quarterly basis.
Net operating income achieved strong growth of 11% year-on-year and 8% quarter-on-quarter, now reaching AED 10.47 billion. Net operating profit amounted to 7.73 billion dirhams, recording strong growth of 12% year-on-year and 10% on a quarterly basis, compared to 6.89 billion dirhams in 2021. The balance sheet expanded by 3% year-on-year to reach 288 billion dirhams.
Customer deposits have now reached 199 billion dirhams, with current and savings accounts accounting for 44% of the customer deposit base (an increase of 225 basis points on a quarterly basis), and customer deposits increased by 7% on a quarterly basis, on the back of higher accounts Current and savings accounts by 12%.
Impairment losses continued to decline to record 2.10 billion dirhams compared to 2.45 billion dirhams in the previous year, a decrease of 14% year-on-year, which reflects the flexibility of the bank’s underwriting portfolio.
The trend of declining non-performing financing continued to now reach 6.5%, i.e. 30 basis points lower, year on year, compared to 6.8% in 2021. The cost to income ratio continued to improve and now stands at 26.1%, i.e. 70 basis points lower. on an annual basis.
Liquidity maintained good levels with the liquidity coverage ratio reaching 150%. The return on assets was 2.0% (up by 47 basis points year-on-year) and the rate of return on tangible equity was 17% (up by 400 basis points year-on-year), continuing their good standing.
Capital ratios remained strong with joint capital tier 1 ratio (CET1) at 12.9% (up 50 basis points year-on-year) and capital adequacy ratio (CAR) at 17.6% (up 50 basis points year-on-year). annual), both of which are well above regulatory requirements. The total property rights amounted to 44 billion dirhams.
Net financing and sukuk investments grew by 5% year-on-year to reach 238 billion dirhams, and total new financing and sukuk amounted to about 63 billion dirhams, compared to 50 billion dirhams in 2021.
economic growth
Mohammed Ibrahim Al Shaibani, Director of the Court of His Highness the Ruler of Dubai and Chairman of the Board of Directors of Dubai Islamic Bank, said: The UAE continued to move forward with achieving economic growth and expansion despite the turbulent global conditions during the past year, which witnessed and continues to witness many geopolitical conflicts, and high rates of Inflation around the world, which clearly reflects the strong fiscal and monetary policy of the UAE and its ability to achieve a strong domestic recovery and surplus in its finances. These prudent economic policies strengthened the banking sector and contributed to growth in the local financial markets which witnessed higher business activity and an increase in foreign inflows.
He added: Dubai Islamic Bank recorded its strongest year in its history, with strong growth in its profitability; Total income reached AED 14 billion, up by 20% year-on-year, and the balance sheet now stands at AED 288 billion, with a 5-year CAGR of 7%. In light of this strong performance recorded by the Group, we are pleased to propose a cash dividend of 30% to our valued shareholders, who have placed most of their precious confidence in the Board of Directors and the management team of the Bank.
Strategy success
For his part, Dr. Adnan Chilwan, Chief Executive Officer, said: I am very pleased to announce that Dubai Islamic Bank recorded an amazing annual profitability for the fiscal year 2022, amounting to 5.6 billion dirhams, which is the highest net income ever recorded by the bank in its history. There is no doubt that these results necessarily reflect the success of our strong strategy and the efforts of the management team and its firm commitment to enhancing value for our shareholders.
He added: In the context of our confrontation with the current rate environment and surplus liquidity, we have taken a deliberate tactical step focusing on quality and structural supply rather than just targeting growth. Within the framework of this approach, we supported many large companies and public sector institutions to adjust and harmonize their balance sheets in light of the new medium-term environment, which led to a successful combination for each of the customers, the bank and the economy in general. Despite this tactical move, we were able to maintain strong liquidity, by strengthening the relationship with the government, public companies and large institutions. The current strong liquidity will provide us with all the reasons for growth in 2023. We continue to control expenses very well, delivering the best cost-to-income ratio in the market at 26.1%, while maintaining a comfortable space to further upgrade the bank’s system.
He continued, “The past year witnessed some of the most important achievements in our sustainability journey, as we succeeded in launching our framework for sustainable financing, followed by the issuance of the first sustainable sukuk amounting to $ 750 million. These two pioneering steps for Dubai Islamic Bank and the region in general herald the beginning of a wonderful journey to transform the bank into a leading sustainable financial institution, in line with our ambition to achieve leadership in the field of environmental, social and institutional governance.
Business performance for 2022
The retail banking business recorded AED 53 billion in 2022, an increase of 5% compared to AED 51 billion in 2021. The value of new subscriptions totaled AED 18 billion, an increase of 29% year-on-year, on the back of the strength of the personal and home finance activities.
Portfolio expanded
