Dubai Islamic Bank (DIB) reported a 38% decline in group annual 2020 net profits to AED 3.16bn ($900mn), as its total income reflected a marginal dip to AED 13.42bn ($3.65bn) in 2020 from AED 13.68bn ($3.72bn) in 2019. The fall in profits was “primarily driven by a deliberate and pointed prudent approach to provisioning ensuring that the bank is protected against any unforeseen scenarios and positioned for a strong rebound in the near future,” DIB said. The bank’s total assets grew 25% to AED 289.6bn ($78.8bn) and customer deposits also grew 25%. Allowances against expected credit losses were at AED 8.4bn ($2.3bn) with 25% of it towards Stage 1 and 2 exposures and 75% against Stage 4 and Purchased or Originated Credit Impaired (POCI). The bank’s CET1 ratio was unchanged over the course of the year at 12% while capital adequacy ratio increased 200bp to 18.5%. DIB’s 4.625% Perp Sukuk was down 0.5 to 108.9.
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