COVID-19 Response and Financial Performance
Asset Quality
Non-Performing Financing ("NPF")¹
Financing Provisions and Coverage Ratios
NPF Ratio
Impaired Financing Ratio
Overall Coverage Ratio²
150%
4.8%
4.6%
135%
112%
3.9% 3.9%
3.4% 3.3%
Dec 2018
Dec 2019
Sept 2020
Cumulative Provisioning (AED million)
Provisions
NPF
Cost of Risk
•
0.99%
0.87%
*
10,049
0.51%
7,355
6,333 6,310
5,857 5,251
Dec 2018
Dec 2019
Sept 2020
بنك دبي الإسلامي
Dubai Islamic Bank
Provision Coverage Ratio
114%
101%
81%
Dec 2018
Dec 2019
Sept 2020
Highlights
Non-Performing Financing and impaired financing ratios
continued to be robust during the current times, at 4.8% and
4.6% respectively.
•
Normalized cost of risk for the period was 99 bps (excluding
one-off charges).
.
Overall coverage including collateral has remained well
above 100%.
¹NPF ratio includes Bilateral Sukuk and is calculated as the sum of individually impaired and 90-day overdue Financing Assets; 2Overall Coverage Ratio is calculated as the sum of provisions held
including regulatory credit risk reserve (if any) and collateral held relating to facilities individually determined to be impaired divided by non-performing financing.
*Includes Purchased or Originated Credit Impaired (POCI) through Noor Bank acquisition
Cost of Risk - Being ratio of net impairment charge on financing assets (normalized) divided by the gross financing and investment in Sukuk.
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