Q2 2024 Dubai Islamic Bank Public JSC Earnings Call Transcript
Key Points
- Dubai Islamic Bank PJSC (DFM:DIB) achieved a significant milestone by migrating its core banking system to the latest version, enhancing efficiency and customer experience.
- The bank delivered a stable set of results in the first half of 2024, with net profit before tax increasing by 18.1% year-on-year to AED 3.72 billion.
- Asset quality improved, with the nonperforming financing ratio decreasing to 4.99%, and cash provisions coverage increasing to 95%.
- The Sukuk portfolio grew by 15% year-to-date, reaching AED 79 billion, indicating a strong investment strategy.
- Deposits increased by 5.4% year-to-date, supported by both corporate and consumer liabilities, reflecting a robust funding position.
- Early settlements, particularly from government-related entities, led to a flat performance in the loan book compared to the same period in 2023.
- Operating expenses increased by 14% year-on-year, raising the cost-to-income ratio by 140 basis points to 27.8%.
- The bank faced challenges with teething issues following the core banking system migration, impacting customer experience.
- Despite improvements, the net interest margin remained flat at 3%, with ongoing pressure from the bank's cost of funding.
- The implementation of new credit risk standards in the UAE remains uncertain, potentially impacting future provisioning and risk management.
Hello, everyone, and welcome to the Dubai Islamic Bank second quarter 2024 inancial results earnings call. Please note to all those who are listening to us via the webcast link, kindly refresh your browser in case you experience any intermittent audio issues.
(Operator Instructions)
I will now hand over to your host, Janany Vamadeva from Arqaam Capital. Please go ahead.
Thank you, Seb. Good afternoon, everyone, and thank you for joining us today. This is Janany Vamadeva and on behalf of Arqaam Capital, I'm pleased to welcome you to Dubai Islamic Bank's Q2 2024 earnings conference call. I have with me here today from DIB management, Dr. Adnan Chilwan, the Group Chief Executive Officer; John Macedo, the Chief Financial Officer; and Mr. Kashif Moosa, the Head of Investor Relations and Strategic Communications.
Without any further delay, I'll now turn the call over to the Head of Investor Relations, Mr. Kashif Moosa. Kashif, over to you.
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