July 22, 2020 / 7:35 AM / 24 days ago

Dubai Islamic Bank net profit falls 27%

DUBAI, July 22 (Reuters) - Dubai Islamic Bank’s (DIB) second-quarter net profit fell 27% from a year ago as net impairment charges jumped 68%, though they eased from last quarter.

DIB posted a net profit attributable to owners of 1.01 billion dirhams ($274.99 million) for the quarter.

Its net impairment charges were 637 million dirhams, much lower than the 1.48 billion dirhams booked in the first quarter, which included 818 million dirhams in extraordinary charges.

Several banks in the region have increased provisions in anticipation of the coronavirus pandemic’s impact on the credit market.

The bank said its capital adequacy ratio stood at 16.7% at the end of June, slightly above 16.5% last quarter.

“In a bid to realign our strategy and build on our strength in the domestic market, the quarter saw a strong advancement in our financing book of 11% quarter-on-quarter, driven by our calculated focus on sovereign and related businesses,” CEO Adnan Chilwan said in a statement.

He added DIB had begun the execution phase of integrating Noor Bank, which it bought this year.

$1 = 3.6728 UAE dirham Reporting by Yousef Saba; Editing by Mark Potter

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