Dubai Islamic Bank Full Year 2021 Group Financial Results

(MENAFN- Weber Shandwick) Dubai, January 25, 2022

Dubai Islamic Bank (DFM: DIB), the largest Islamic bank in the UAE and the second largest Islamic bank in the world, today announced its results for the period ending December 31, 2021.

FY 2021 Highlights:
• Despite a decline in Total Income, primarily due to the on-going lower rate environment and large corporate repayments during the year, Group Net profits saw a significant increase of 39% YoY to reach AED 4,406 million vs AED 3,160 million in 2020
• Operating revenues remained stable at AED 9,422 million vs AED 9,471 million in 2020 following efficient management of cost-of-funds.
• Further reduction in operating expense, down by 7% YoY from AED 2,728 million to AED 2,529 million as efficiency building continues.
• Profit before impairments improved by 2% YoY to reach AED 6,892 million vs AED 6,743 million in 2020.
• Prudent risk management led to significantly lower impairment losses of AED 2,448 million, lower by 46% YoY.
• Marginal decline in earning assets of 1.5% with net financing and sukuk investments at AED 228.5 billion vs AED 232.0 billion in 2020. Total assets now stand at AED 279.1 billion.
• Gross new financing of nearly AED 36 billion during the year coming from both consumer and corporate were offset by large early settlements and routine repayments of more than AED 45 billion during the year.
• Customer deposits remained stable at AED 205.8 billion with CASA increasing by 4.4% to over AED 90 billion, now forming 44% of the customer deposit base.
• Liquidity remain healthy with finance to deposit ratio of 91% and LCR of 136% (+700bps YoY).
• Continued healthy improvements on ROA now at 1.5% (+30bps YoY) and ROE at 11.8% (+140bps YoY).
• Capitalization levels remain robust with CET1 at 12.4% and CAR at 17.1%, both well above the minimum regulatory requirement. Total equity now stands at AED 41.5 billion.

Management’s comments for the full year ending 31st December 2021:

His Excellency Mohammed Ibrahim Al Shaibani

Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank • As the world economy continues to battle its way through the pandemic, the UAE has stood out as a shining star effectively navigating the various macro challenges as recovery in tourism, hospitality, real estate, the financial markets as well as the general banking sector remains on track. Dubai’s strong economic fundamentals has established the emirate amongst the best cities in the world to lead a prosperous and healthy life.
• Despite the on-going global market uncertainties, the UAE banking sector remains robust with rising profitability and strong capitalization. DIB has successfully navigated through the ongoing economic environment generating a significant 39% YoY growth in net profits.
• The Bank remains on solid ground moving into the new year as we continue to unearth business opportunities in an improving local economic climate to deliver solid returns to all our valued shareholders whilst maintaining the highest standards of governance across the bank.

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