Dubai Islamic Bank shareholders approve $490m in dividend payments for 2021

The bank reported a 33% jump in its 2021 net profit due to lower impairment charges and higher income from investments

Dubai Islamic Bank said it aims to generate stronger returns for its shareholders as the UAE's economy continues to recover from the coroanvius pandemic. Mona Al Marzooqi / The National

The shareholders of Dubai Islamic Bank, the UAE’s biggest Sharia-compliant lender by assets, approved Dh1.8 billion ($490 million) in dividend payments for 2021 following the bank's strong performance last year amid the country’s economic recovery from the Covid-19 pandemic.

The total dividend payments approved by DIB shareholders during the annual general meeting amount to 25 per cent of the lender’s paid-up capital, the bank said in a statement on Wednesday to the Dubai Financial Market, where its shares are traded.

“Today, having successfully navigated through the pandemic and its economic hangover, DIB is perfectly set on a course to deliver strength, scale and resilience for the long term, aligning DIB with the UAE’s business and economic recovery plan, and leaving it positioned for sustained, responsible growth that creates value for our customers, the communities we serve and our shareholders,” said Mohammed Al Shaibani, chairman of DIB.

DIB's net profit jumped 33 per cent in 2021 to more than Dh4.39bn as impairment charges during the period fell 46 per cent to Dh2.44bn while income from investment properties more than doubled to Dh224.6m.

“Looking into 2022, the bank’s strategic direction is perfectly aligned with that of the UAE,” the lender said. “DIB’s newly unveiled five-year strategy is set out to strengthen and grow the group’s business, building on the progress made in 2021 to transition DIB into a more sustainable business model that generates stronger returns for its shareholders.”

The UAE's economy continued to recover from the pandemic-induced slowdown on the back of government initiatives, higher oil prices and an accelerated vaccination programme. The Arab world's second-largest economy is forecast to grow by between 4 per cent and 4.5 per cent cent this year, according to Emirates NBD.