UAE conventional banks’ assets reach Dhs3.047 trillion: CBUAE

The latest statistics issued by the Central Bank of the UAE (CBUAE) showed the gross assets of conventional banks operating in the country reached Dhs3.047 trillion by the end of January 2023, an annual increase of 12.8 per cent, compared to nearly Dhs2.7 trillion in January 2022.

The Central Bank’s statistics indicated that conventional banks in the UAE accounted for nearly 83.1 per cent of the total assets in the banking sector by the end of January 2023, which amounted to Dhs3.668 trillion, while Islamic banks accounted for 16.9 per cent.

The total credit of conventional banks was Dhs1.477 trillion at the end of January 2023, an annual increase of 4.3 percent, while deposits in conventional banks increased to Dhs1.799 trillion at the end of January 2023, an annual increase of 15.2 per cent.

Also, total conventional bank investments recorded an annual increase of 12.9 percent to Dhs430.2 billion by the end of January 2023.

Islamic banks’ assets: Gross assets of the Islamic banks operating in the UAE increased to Dhs620.9 billion as of the end of January 2023, an annual increase of 5.6 per cent, equivalent to nearly Dhs31.2 billion, as against nearly Dhs589.7 billion in January 2022, according to figures by the Central Bank of the UAE (CBUAE).

The central bank statistics reflect an increase in credit for Islamic banks to Dhs396.9 billion at the end of January 2023, an annual increase of 3.5 per cent compared to nearly Dhs383.36 billion in January 2022, and an increase of nearly Dhs13.3 billion in 12 months. The Islamic banks’ deposits increased to Dhs434.1 billion in January 2023, an annual increase of 3.1 per cent, compared to nearly Dhs421 billion in January 2022. The statistics also reported that the total investments of Islamic banks amounted to Dhs106 billion by the end of January 2022, an annual increase of 20.1 per cent, equivalent to Dhs171 billion, compared to investments of about Dhs88.3 billion in January 2022.

Dubai Islamic Bank, the largest Islamic bank in the UAE, announced recently its results for the period ending 31st March, 2023.

The Bank’s net profit came in at Dhs1.506 billion, up 12 per cent year-on-year (YoY) compared to Dhs1.345 billion, a growth was driven by rising core revenues and effective cost management. Net financing and sukuk investments stood at Dhs240 billion, up 1 per cent YTD with nearly Dhs21 billion in new underwriting during Q1 2023 vs Dhs1.5 billion in Q1 2022.

DIB’s total income rose to Dhs4.431 billion compared to Dhs3.016 billion, a solid expansion of 47 per cent YoY. Net operating revenues showed a robust 12 per cent YoY to reach Dhs2.755 billion, while net operating profit stood at Dhs2.013 billion, a solid increase of 14 per cent YoY compared to Dhs1.770 billion in Q1 2022.

Moreover, the bank’s balance sheet expanded by 1.3 per cent YTD to Dhs292 billion, while customer deposits settled at Dhs198 billion with CASA comprising 40 per cent of DIB’s deposit base.

Mohammed Ibrahim Al Shaibani, Director-General of His Highness the Ruler of Dubai’s Court and Chairman of Dubai Islamic Bank, said, “The UAE’s economy continue to expand at a fast rate supported by high energy prices, increasing business trade and activities and the return of tourism which has boosted domestic retail spending. The banking sector remains well-insulated from the global contagion and continues to be on a solid footing with steady growth in their balance sheets and rising profitability levels with DIB closing the first quarter of the year with very strong and remarkable set of results.

Separately, Sharjah Islamic Bank announced recently that its operating profit before provisions increased by 31.9 percent, amounting to Dhs327.7 million for the first quarter of 2023, compared to Dhs248.5 million for the same period last year.

Net profit reached Dhs233.1 million for the quarter ending 31st March 2023, compared to Dhs187.0 million for the same period last year; an increase of 24.6 per cent.

Net income on financing and investment products rose by 26.1 per cent, an increase of Dhs76.6 million, reaching Dhs370.4 million for the first quarter of 2023, compared to Dhs293.8 million for the same period last year. Net fees, commissions and other Income increased by 25.3 per cent to reach Dhs113.5 million, compared to Dhs90.5 million for the same period the previous year.

As for general and administrative expenses, SIB achieved a noticeable improvement in the cost-to-income ratio, which reached 32.26 per cent compared to 37.96 per cent at the end of last year. Expenditures amounted to Dhs156.1 million at the end of the first quarter of 2023, compared to Dhs135.8 million for the same period in 2022, an increase of Dhs20.3 million.

SIB recorded an increase in net impairment provisions amounting to Dhs94.7 million, compared to Dhs61.5 million for the previous period, an increase of Dhs33.2 million or 54.0 per cent. Total Assets reached Dhs 60.2 billion at the end of the first quarter of 2023, an increase of Dhs1.1 billion or 1.9 per cent compared to Dhs59.1 billion at the end of 2022.

The bank has maintained a strong liquidity position as its total liquid assets amounted to Dhs14.1 billion, 23.3 per cent of its total assets, compared to 23.9 per cent at the end of the previous year. On the other hand, the Islamic financing to customer deposits ratio stood at a strong 72.6 percent compared to 77.6 per cent last year.