The bank's total income for the first quarter increased 6 per cent annually to Dh3bn. Photo: Dubai Islamic Bank
The bank's total income for the first quarter increased 6 per cent annually to Dh3bn. Photo: Dubai Islamic Bank
The bank's total income for the first quarter increased 6 per cent annually to Dh3bn. Photo: Dubai Islamic Bank
The bank's total income for the first quarter increased 6 per cent annually to Dh3bn. Photo: Dubai Islamic Bank

Dubai Islamic Bank's first-quarter net profit jumps 57% on lower impairment charges


Deena Kamel
  • English
  • Arabic

Dubai Islamic Bank, the UAE's biggest Sharia-compliant lender by assets, reported a 57 per cent rise in first-quarter net profit, driven by lower impairment charges and higher operating revenue, as the UAE economy continues to recover from the Covid-19 pandemic.

Net profit attributable to shareholders of the bank for the three months to the end of March climbed to Dh1.35 billion ($367 million) from Dh845m in the same quarter last year, the lender said in a statement on Wednesday to the Dubai Financial Market, where its shares are traded.

Total income for the first quarter increased 6 per cent annually to Dh3bn, while impairment charges during the period fell 44 per cent to Dh417m.

The results come despite "ongoing unpredictable economic and international market conditions that are impeding progress", reflecting the bank's "alignment towards the expansionary agenda of the UAE’s economy", said Mohammed Al Shaibani, director general of The Ruler’s Court in Dubai and chairman of DIB.

"The banking sector continues to demonstrate steady growth year-on-year as DIB’s first-quarter earnings return to pre-pandemic levels."

The UAE economy continues to recover from the pandemic on the back of stimulus measures worth Dh388bn, a rapid vaccination programme and easing of travel restrictions.

Moody's Investors Service changed the outlook for banks in the six-country GCC bloc to 'stable' from 'negative', citing an improvement in operating conditions after the pandemic. Banks in the UAE will maintain steady profitability and solid capital buffers, the rating agency said in a report.

"DIB’s strong set of first quarter results ... is a demonstration of the bank’s ability to navigate through economic headwinds," said Adnan Chilwan, group chief executive of Dubai Islamic Bank.

"The bank’s financial position clearly denotes the resilience of the franchise and its inherent capability of withstanding market challenges."

The bank's operating expenses rose to Dh698m, compared to Dh612m in the prior-year period, with cost to income ratio now at 28.3 per cent and still in line with the bank's guidelines, it said.

DIB's return on assets increased to 1.88 per cent and return on equity rose to 16.2 per cent.

Banks in the GCC stand to gain from higher energy prices and a rise in interest rates that will significantly improve their bottom lines as cost of risk continues to decline amid economic growth in the region, S&P Global Ratings said last month.

"The improving macro environment with higher oil prices coupled with rising rates will continue to benefit DIB where the majority of earning assets are in a floating rate book, aiding the bank in reaching its targeted margin guidance for the year," Mr Chilwan said.

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Based: Singapore, with offices in the UAE, Malaysia, Hong Kong, Thailand
Sector: FinTech, wealth management
Initial investment: $500,000 in seed round 1 in 2016; $2.2m in seed round 2 in 2017; $5m in series A round in 2018; $12m in series B round in 2019; $16m in series C round in 2020 and $25m in series D round in 2021
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Rating: 4.5/5

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Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
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UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

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5 of the most-popular Airbnb locations in Dubai

Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:

• Dubai Marina

The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.

Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739 
Two bedroom: Dh627 to Dh960 
Three bedroom: Dh721 to Dh1,104

• Downtown

Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure.  “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."

Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154

• City Walk

The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena.  “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”

Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809 
Two bedroom: Dh682 to Dh1,052 
Three bedroom: Dh784 to Dh1,210 

• Jumeirah Lake Towers

Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.

Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629 
Two bedroom: Dh549 to Dh818 
Three bedroom: Dh631 to Dh941

• Palm Jumeirah

Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.

Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770 
Two bedroom: Dh654 to Dh1,002 
Three bedroom: Dh752 to Dh1,152 

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Conflict, drought, famine

Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.

Band Aid

Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.

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Five personal finance podcasts from The National

 

To help you get started, tune into these Pocketful of Dirham episodes 

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Balance is essential to happiness, health and wealth 

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How gamers are getting rich by earning cryptocurrencies 

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Should you buy or rent a home in the UAE?  

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  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
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  • NBA-spec basketball court with auditorium
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  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
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  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
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What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence

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By Michael Wolff,
Henry Holt

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Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue

Director: M Night Shyamalan

Rating: 3/5

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Director: Saeed Roustaee

Starring: Parinaz Izadyar, Payman Maadi

Rating: 4/5

Banthology: Stories from Unwanted Nations
Edited by Sarah Cleave, Comma Press

Updated: April 27, 2022, 11:13 AM`