Dubai Islamic Bank, the largest Islamic bank in the UAE and the second-largest Islamic bank in the world, on Wednesday, said its net profits increased by 39 percent in 2021 to AED 4.4 billion ($1.19 billion).
The jump in profits was achieved despite a 10 percent decline in total income due to the ongoing lower rate environment and large corporate repayments during the year, the bank said in a statement.
The bank said it had ‘healthy liquidity’ with finance to deposit ratio of 91 percent. The statement said there was a significant decline in impairment losses of 46 percent YoY.
Subject to the approval of the AGM, the bank said it proposed to pay a dividend of 25 percent to shareholders.
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 percent YoY from AED 2,728 million to AED 2,529 million as efficiency building continues, the statement added.
The total assets of the bank 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, the bank said.
Mohammed Ibrahim Al Shaibani, Chairman of Dubai Islamic Bank, said, “DIB has successfully navigated through the ongoing economic environment generating a significant 39 percent 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.”
