Dubai Islamic Bank FY net profit jumps 26%; beats estimate

Dubai Islamic Bank, the UAE’s largest Islamic lender, posted a 26% jump year-on-year (YoY) in its FY 2022 net profit to 5.55 billion dirhams ($1.5 billion), driven by lower impairments and improved net income.

The earnings easily beat Refinitiv’s mean analyst estimate of AED4.97 billion.

Net income grew 11% YoY to AED10.4 billion versus AED9.4 billion in same period of last year, the Dubai Financial Market-listed lender said in a statement on Wednesday.

Impairment charges fell to AED2.1 billion compared with AED2.5 billion in the previous year

The board of directors has proposed a cash dividend distribution of 30 fils per share.

• FY 2022 Highlights:

•    Substantial growth in Group Net Profit of 26% YoY to AED 5,552 million vs AED 4,406 million in same period last year. The strong growth was driven by rising core revenues, prudent cost management and sustained lower impairments.
•    Net financing and sukuk investments grew by 5% YoY to AED 238 billion. The bank attained nearly AED 63 billion in annual gross new underwriting and sukuk vs AED 50 billion in FY2021.  
•    Total income reached to AED 14,101 million compared to AED 11,795 million, double digit growth of 20% YoY and 17% QoQ.
•    Net Operating Revenues showed a robust 11% YoY increase and 8% QoQ to reach AED 10,467 million.
•    Net Operating Profit now at AED 7,734 million, a strong increase of 12% YoY and 10% QoQ, compared to AED 6,892 million in FY 2021.
•    Balance sheet expanded by 3% YoY to AED 288 billion.  
•    Customer deposits now at AED 199 billion with CASA comprising 44% (+225bps QoQ) of the deposit base. Customer deposits were up 7% QoQ, primarily due to a 12% increase in CASA.   
•    Impairment charges continue to decline registering AED 2,103 million against AED 2,448 million in previous year, lower by 14% YoY, demonstrating resilience of the financing book.
•    NPF ratio continues its downward momentum now at 6.5% lower by 30 bps YoY compared to 6.8% in FY 2021.
•    Cost to income further improved to 26.1%, down 70 bps YoY.
•    Liquidity remains healthy with LCR of 150%.
•    Continued improvement on ROA now at 2.0% (+47bps YoY) and ROTE at 17% (+400bps YoY).
•    Capitalization levels remain robust with CET1 at 12.9% (+50bps YoY) and CAR at 17.6% (+50bps YoY), both well above the minimum regulatory requirement. Total equity now stands at AED 44 billion.

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