Bond Market News

Dubai Islamic Bank’s Q2 2022 net profit rose steeply by 45% to AED 2.7bn ($740mn). This was a product of total income improving 7% YoY to AED 6.3bn ($1.7bn) and a 37% lower impairment charge of AED 948mn ($258mn). Despite a 9% YoY increase in operating expenses, it was more than offset by high revenue growth, bringing the bank’s cost income ratio to 26.9%, 140bp lower vs. Q2 2021. On the balance sheet, there was notable inflow of new investments and financing of AED 33bn ($8.98bn), bringing net financing and sukuk investments up 6% YoY to AED 241bn ($65.6bn). Mohammed Ibrahim Al Shaibani, Chairman of DIB, said “Dubai’s progressive economic recovery remains on track and DIB’s momentous first half results reflect the improving macroeconomic conditions.” The bank’s CET1 ratio stands at 13.2%, 80bp higher vs. Q2 2021.

Dubai Islamic Bank’s 6.25% perps callable in 2025, were down 0.37 points, trading at 101.25 to yield 5.7%.

In related news from Dubai, Commercial Bank of Dubai’s (CBD) H1 2022 profit increased 28.1% to AED 866mn ($236mn) on the back of a 10% YoY jump in total operating income AED 1.7bn ($460mn), driven by net interest income, fees and commissions. Net impairment allowances decreased 19.3% to AED 393mn ($107mn). The bank’s CET1 ratio sits at 11.88%. Despite the rally in profits, CBD’s 6% perps callable in 2026 were trading lower at 96.2, down 0.78 points, to yield 7.19%.