Investor Presentaiton
Asset Quality
Impairment charges (AED mil) and cost of risk (COR %)
Impairment charges (AED mil)
COR
0.9%
0.8%
0.7%
1.1%
0.8%
0.7%
0.7%
بنك دبي الإسلامي
Dubai Islamic Bank
#Ready For TheNew
Provisioning (AED mil), NPF¹ (AED mil) and Cash Coverage Ratio
(%)
Provisions
NPF
Coverage Ratio %
90%
13,784
76%
12,061
9,900
12,986
*
11,497
**
10,130
78%
10,305
72%
9,203
417
531
502
496
463
450
653
0.2%
-13
Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023
2020
2021
2022
2023
NPF and Total Coverage (%)
-Total Coverage (%)
NPF
6.7%
6.5%
6.5%
6.5%
6.5%
6.4%
6.0%
121%
117%
5.4%
113%
113%
110%
105%
103% 103%
Q1 2022 H1 2022 Q3 2022 FY 2022 Q1 2023 H1 2023 Q3 2023 FY 2023
Highlights
•
•
Non Performing Financing (NPF) declined by 11.5% YoY to AED 11,497
million leading to NPF ratio improvement by 110 bps YoY to 5.4% -
lowest ratio since the pandemic.
NPF Cash Coverage enhanced to 90%, up 1200 bps YoY underpinning
DIB's overall prudent risk strategy.
Provision charge for the period is at AED 1,396 million down 34% YoY.
4Q 2023 witnessed a small reversal of AED 13 million due to the banks
success in achieving settlements against certain large legacy accounts.
•
Cost of risk in YE 2023 as a result is trending downwards to 60 bps,
down 25 bps YoY.
¹NPF ratio includes Bilateral Sukuk and is calculated as the sum of individually impaired 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; ** Total provision includes stage 1 & 2 ECL held in Noor Bank and PPA adjustments
Cost of Risk-Being ratio of net impairment charge on financing assets, sukuk and overdraft charge to the aggregate gross outstanding balances of financing assets, sukuk investments and overdrawn accounts.
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