Improving profitability supported by a 27% reduction in operating expenses YoY.

Integration synergies materializing as efficiency build up continues.

Cost income ratio of 27.5%, the lowest in the financial sector, positioning the bank as the most efficient player in the market.

Dubai: Dubai Islamic Bank (DFM: DIB), the largest Islamic bank in the UAE and the second largest Islamic bank in the world, today announced its results for the period ending March 31, 2021.

First Quarter 2021 highlights: 

  • Total income reached AED 2.8 billion as the bank continued to display resilience in the given economic scenario.
  • Profit before impairments rose to AED 1,614 million compared to AED 1,592 million in the same period last year.
  • Group net profit of AED 853 million whilst lower YoY, excludes the one-off gain in Q1 2020 of AED 1 billion.
  • Operating expenses of AED 612 million were lower by 27% year on year vs AED 839 million, driven by stringent cost discipline and materializing of substantial integration cost synergies.
  • Cost to income ratio improves by 190 bps to 27.5% from 29.4% at YE2020, positioning the bank as the most efficient player in the sector.
  • Impairment charges reduced by a significant margin signifying the success of the risk management strategy as well as improving market trend.
  • Customer deposits increased to AED 214 billion from AED 206 billion, rising by 4% YTD and 7% YoY.
  • Low cost deposit continue to remain strong with CASA at 40%.
  • Strong liquidity position, with financing to deposit ratio at 91.7% and LCR of 127% is well above regulatory requirements under the TESS program.
  • ROA at 1.2% and ROE at 9.6% remain robust given the challenging environment.
  • Capitalization levels remained comfortably above minimum regulatory requirements, with CET1 at 12.3% and CAR at 17.1%.
  • Strong year on year growth on key digital metrics.
    • Mobile banking users - 20% YoY growth
    • Mobile banking transactions – 43% YoY growth
    • Internet banking users – 15% YoY growth
    • Internet banking transactions – 57% YoY growth

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