Saturday, Oct 1, 2022
International Finance
Islamic Banking

Dubai’s Noor Bank net profits surge 29% to Dh410 mn in H1

Noor Bank’s rise in revenue is attributed to its income generated from net financing, investments and non-funded income

Dubai’s Noor Bank has reported a 29 percent surge in net profits for the first half of the year. Noor Bank’s net profit at the end of June reached Dh410 million and its revenue rose 7 percent during the period.

Noor Bank’s rise in revenue is attributed to its income generated from net financing, investments and non-funded income, media reports said. 

Noor Bank’s impaired financing ratio improved to 4.3 percent and the capital adequacy ratio reached 17.2 percent during the first six months of the year. Its total assets increased 4 percent. Customer financing and customers deposits rose 5 percent and 11 percent respectively.

“We attribute our record results in the first half to our robust balance sheet and solid performance across our businesses,” John Iossifidis, chief executive of Noor Bank, said. “Our disciplined cost management and lower impairment charges have significantly contributed to the surge in net profit with an improved cost-to-income ratio.”

Dubai Islamic Bank is in the process of acquiring Noor Bank as it has received an approval from its board. The acquisition will make Dubai Islamic Bank the fourth largest bank by assets in the UAE. “Noor Bank cost base is roughly one third that of DIB,” Vrajesh Bhandari, senior portfolio manager with Al Mal Capital told Gulf News.

Of late, banks in the UAE and in the Gulf are actively seeking mergers and acquisitions to improve their business. First Abu Dhabi Bank, a merger between National Bank of Abu Dhabi and First Gulf Bank is ranked the largest by assets. 

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