The UAE’s Dubai based banking major and Sharia-compliant lender, the Dubai Islamic Bank (DIB), is well capitalized and quite optimistic on the fact that the economic recovery is definitely on the cards, as the COVID-19 Pandemic’s catastrophe is now gradually receding down in nation and hence its upbeat regarding the progression prospects this year in 2021, notwithstanding a 23 percent plummeting as witnessed during initial quarter’s profits.
The Chairman of DIB, Mohammed Al Shaibani, stated that; “Amidst the ongoing market volatilities, DIB continues to deliver strong operating performance. With robust fundamentals in place, DIB is well positioned to connect with the country’s large-scale economic programmes such as the World Expo, Dubai Industrial Strategy 2030 and the Dubai Urban Master Plan that will support future growth of the bank.”
He also added out that; Government measures to provision the economy and a rapid rollout of Covid-19 vaccination are anticipated to “accelerate consumer spending and business activities in the coming periods.”
Net profit for the three months to the close of March deteriorated to Dh853 million ($234.4m), in the absence of a Dh1 billion one-off gain logged in the initial quarter of 2020, the lender stated in a statement to the Dubai Financial Market, where its shares trade. The progress in profit from Dh53m recorded in the preceding three months of 2020 opinions to a “clearly improving economic trend”.
He also further added out that; a further broadening in the Targeted Economic Support Scheme (TESS) – a Dh50bn zero-cost liquidity provision offered by the Central Bank of the UAE – will be enough for backing the banking sector and DIB “remains aligned to providing support to the domestic economy.”
Prior to this month, the central bank stretched parts of Tess until the close of June 2022 to benefit bolster the impression of the Covid-19 pandemic on the economy. Overall, the UAE has set rolling out economic provision packages valued at Dh388bn since the commencement of the pandemic.
Customer deposits at the close of the initial quarter touched a 4 percent year-to-date upsurge and 7 percent year-on-year intensification to Dh214bn. Total assets nurtured 6 percent to Dh291.71bn.
Lenders globally are confronting enhanced operating conditions as industries get alleviated and economies steadily emerge from the pandemic-powered slump down.
DIB, which accomplished its acquisition of rival Noor Bank to generate one of the largest Islamic banks globally the preceding year, stated that its profit before impairments had upsurged to Dh1.61bn at the termination of March from Dh1.59bn in the same period the preceding year.
Impairment charges plummeted 49 percent from a year prior to reach Dh751m, which the bank stated that it implies that “the triumph of risk management strategy.”
The Group’s Chief Executive of DIB, Adnan Chilwan, stated that, still there are significant hurdles” in the existing circumstances and DIB will “endure to approach the year with extreme prudence, with focus on low-risk sectors and those showing consistent signs of recovery as the market improves.”
Abdulla Al Hamli, managing director of DIB, stated that; “DIB’s focus on digitisation and optimisation has further strengthened the bank’s position in the sector.”
The bank, which endures to invest in its digitization, stated that smartphone banking clients nurtured 20 percent, while banking businesses done through mobile phones improved 43 percent from a year earlier. Internet banking clients and dealings also progressed 15 percent and 57 percent, correspondingly.