Dubai: Dubai Islamic Financial institution (DIB) on Tuesday reported Dh3.12 billion web revenue for the 9-month interval ended September 30, 2020, down 22 per cent yr on yr.
The financial institution’s complete revenue reached almost Dh9.9 billion for the 9 months of 2020 while web working income grew to Dh6.9 billion supported by core enterprise progress in addition to strong charges and commissions and FX revenue of Dh1.32 billion, a rise of 19 per cent yr on yr.
The financial institution mentioned regardless of the challenges within the world financial system, it continues to show franchise power and stay worthwhile throughout the on-going world disaster.
DIB expects the completion of the Noor integration to deliver additional optimistic contributions in the direction of the financial institution’s general profitability.
“The on-going consolidation of the banking sector within the GCC area is predicted to proceed with constrained progress alternatives and decrease oil costs,” mentioned Mohammed Ibrahim Al Shaibani, Director-Basic of His Highness The Ruler’s Courtroom of Dubai and Chairman of Dubai Islamic Financial institution
“DIB’s strategic acquisition of Noor stays on course for completion by yr finish. The anticipated synergies have already began to materialize which can pave the way in which for strong progress and higher returns for our shareholders within the years to return.”
Working bills reached Dh2.13 billion within the first 9 months of 2020 in opposition to Dh1.77 billion throughout the identical interval final yr.
The rise in prices primarily stems from consolidation influence of Noor Financial institution in addition to integration bills in 1Q 2020. Price to revenue ratio stood at 29.4 per cent as of Q3 2020, and is predicted to steadily enhance as synergies materialize, the financial institution mentioned.
Financing and sukuk
The web financing & sukuk investments grew to Dh234.5 billion throughout the 9 months of 2020 from Dh184.2 billion on the finish of 2019, a sturdy rise of 27 per cent. Almost Dh42 billion had been deployed in gross new financing progress pushed by the realignment of technique specializing in decrease danger sectors, notably sovereigns, and consists of gross new client financing amounting to Dh9.5 billion to this point.
“Specializing in low danger segments, the financial institution stays on the prime out there from incomes property progress perspective with 9 months improve of 27 per cent supported by gross new financing of round Dh42 billion. Regardless of the expansion, liquidity remained sturdy at 92 per cent,” mentioned Dr. Adnan Chilwan, Dubai Islamic Financial institution’s Group Chief Government Officer.
Funding and liquidity
Buyer deposits grew to Dh214.6 billion from Dh164.4 billion at year-end 2019 reflecting vital rise of 31 per cent yr to this point. CASA [current and savings accounts] rose strongly by 52 per cent yr to this point to Dh82.9 billion, rising from Dh54.6 billion in year-end 2019. This at the moment represents about 39 per cent of buyer deposits. Internet financing to deposit ratio stood at 92 per cent, signifying ample liquidity regardless of materials progress in financing e-book.
Asset high quality
Non-performing financing (NPF) ratio and impaired financing ratio stood at 4.8 per cent and 4.6 per cent respectively. Money protection and general protection ratio, together with collateral at discounted worth stood at 81 per cent and 114 per cent respectively.
Capital adequacy and CET 1 ratios improved to 17.3 per cent (+80 bps YTD) and 12.9 per cent (+90 bps YTD) respectively.