#Dubai Islamic Bank’s full year profit drops on higher impairment charges | The National

Dubai Islamic Bank’s full year profit drops on higher impairment charges | The National

Dubai Islamic Bank (DIB), the largest Sharia-compliant lender in the UAE by assets, reported a 34 per cent drop in its full-year net profit as impairment charges and operating expenses rose amid the coronavirus pandemic.

Net profit attributable to owners of the bank for the period ending December 31, 2020 declined to Dh3.29 billion ($895 million). Impairment charges more than doubled to Dh4.5bn as the lender took a "prudent approach" to its loan book to protect against unforeseen scenarios, the lender said in a statement to the Dubai Financial Market, where its shares trade. Operating expenses climbed 16 per cent to Dh2.7bn.

“The DIB franchise is capable of weathering challenging situations and possesses the ability to come out as a winner, as it has done in similar situations in the past,” Mohammed Al Shaibani, director-general of the Ruler’s Court of Dubai and chairman of Dubai Islamic Bank, said.

“The confidence shown by investors, stakeholders and customers alike towards the DIB Group is testament to the trust and dependability that it owns.”