2023-04-19 07:32:16
The profits of “Dubai Islamic Bank” increased during the first quarter of this year by 12%, in line with the average expectations of analysts, with the increase in the bank’s total new financing and cost control.
The profits of the bank, which is one of the largest Islamic banks in the region, amounted to 1.5 billion dirhams, with revenues exceeding 4.4 billion dirhams.
Non-performing financing decreased by 162 million dirhams, to reach 12.8 billion dirhams, compared to 12.986 million dirhams in the fiscal year 2022.
The improvement in non-performing financing came on the back of the continuous repayments from “NMC” and “Noor Bank”, which led to a 6% decline in the non-performing financing of the two companies, according to the company’s data issued on Wednesday.
However, provisions rose 19% during that period to reach AED 496 million.
Dubai Islamic Bank’s asset quality remained strong with the non-public financing ratio stable at 6.5%, according to Ananan Chilwan, the bank’s CEO. He added that the overall coverage ratio and the cash coverage ratio are increasing, which indicates the bank’s wise approach to risk management
Total new financing for Dubai Islamic Bank during the first quarter recorded an increase of 15.8 billion dirhams, or 35%, compared to 11.7 billion dirhams in the first quarter of 2022, supported by corporate and retail financing.
Cost control was one of the main reasons for achieving profit growth during the first quarter, according to Adnan, who indicated in a statement that the net profit margin improved strongly by 50 basis points on an annual basis, to reach 3.2%.
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