Dubai Islamic Bank achieved a 13% growth in profits for the fourth quarter of 2022, to reach 1.5 billion dirhams; To record better results than analysts' expectations at 1.38 billion dirhams.
According to Arabiya Net, the bank thus achieved its strongest year in its history, as total income increased by 20% year-on-year, to reach 14 billion dirhams.
The balance sheet now stands at AED 288 billion with a 5-year compound annual growth rate of 7%, and annual net profit grew by a record 26% to AED 5.5 billion. Group net profit posted a record 26% year-on-year growth.
The Board of Directors recommended distributing cash dividends to shareholders of 30 fils per share for the year 2022, compared to 25 fils per share distributed for the year 2021.
This strong growth comes on the back of higher main revenues, managing costs, and the continued decline in impairment provisions. Net financing and sukuk investments grew by 5% year-on-year to reach 238 billion dirhams, and total new financing and sukuk reached about 63 billion dirhams, compared to With 50 billion dirhams in 2021.
Total income amounted to 14.101 million dirhams compared to 11.795 million 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% on a quarterly basis, to now reach 10.467 million dirhams, while net operating profit amounted to 7.734 million dirhams, recording a strong growth of 12% on an annual basis and 10% on a quarterly basis. compared to 6.892 million dirhams in 2021.
The balance sheet expanded by 3% year-on-year to reach AED 288 billion.
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 2.103 million dirhams compared to 2.448 million dirhams in the previous year, a decrease of 14% year on year, which reflects the flexibility of the bank’s subscription portfolio. 30 basis points, year-on-year, compared to 6.8% in 2021.
Dubai Islamic Bank said that the improvement in the cost-to-income ratio continued to now reach 26.1%, which is 70 basis points lower year on year, and 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.
Dubai Islamic Bank announced that capital ratios remained strong with the joint capital tier 1 ratio (CET1) reaching 12.9% (up 50 basis points year-on-year) and the capital adequacy ratio (CAR) at 17.6% (up 50 basis points year-on-year), both of which are well above regulatory requirements. The total property rights amounted to 44 billion dirhams.
For his part, Marwan Shurrab, Head of the Individuals and Private Accounts Department at Al Ramz Capital, said that the results of Dubai Islamic Bank are excellent, and gave strong positive profit growth to the banking sector in 2022, in light of its announcement of historic dividends of 30 fils per share.
Marwan Shurrab added, in an interview with Al-Arabiya, today, that the bank's results were good, despite fears of a decline in business results in the last quarter of last year, and the results showed a reduction in provisions.
He explained that the bank's strong dividends give a strong signal to the banking sector in 2022.
