DIB reports $274m second-quarter net profit as economic recovery continues

The UAE’s largest Sharia-compliant lender by assets posted a $517.3m profit in the first half of the year

Dubai Islamic Bank customer deposits rose by 6% to Dh218.3bn in the first half of the year, compared with the end of 2020. Mona Al Marzooqi / The National

Dubai Islamic Bank, the UAE's biggest Sharia-compliant lender by assets, remains on a steady recovery path as the economic outlook improves.

The Dubai-based lender posted a net profit of Dh1 billion ($274m) in the three-month period ending June 30, largely unchanged from the same period a year ago, according to a regulatory filing with the Dubai Financial Market, where its shares are traded.

"DIB’s profitability remained strong despite the challenging last 18 months," said the bank's chief executive, Adnan Chilwan. "Driven by stronger top-line growth [due to volumes] and declining impairments trend, DIB remains on the planned steady recovery path the bank has outlined in its strategy."

Impairments narrowed by 29 per cent in the first half to Dh1.5bn while customer deposits rose by 6 per cent to Dh218.3bn in the period, compared with the end of 2020. The lender posted a Dh1.9bn net profit in the first half of the year.

"As the world slowly comes out of the shadows of the pandemic, the GCC region is well on its way to return to normality," said DIB chairman Mohammed Al Shaibani.

The "UAE in particular has been phenomenal in the way it has managed the Covid-19 situation, right from the time it erupted until today, when the country holds the proud distinction of having administered the most vaccines in the world per capita".

At least 77.9 per cent of the UAE population have received one Covid-19 vaccine dose while 68.75 per cent are fully vaccinated.

Moving forward, DIB remains committed to its digitisation transformation, said Mr Chilwan.

"We remain committed to applying digital tech in every aspect of banking," he said. "From product offering to servicing, extensive changes are being put in place with the introduction of new tools and initiatives, with a singular focus to make remote banking easier for our customers."