• Net profit of AED 7 billion, stellar growth of 26% YoY.
  • Expansion continues as Balance Sheet rises to AED 314 billion, up 9% YoY.
  • Asset quality improved to 5.4% down 110 bps YoY, beating guidance.
  • Shareholder returns continue to grow with RoTE at 20%, up 300 bps YoY, beating guidance.
  • Proposed dividend of 45%, subject to shareholder approval in AGM.

Dubai: Dubai Islamic Bank (DFM: DIB), the largest Islamic bank in the UAE, today announced its results for the period ending December 31, 2023.

FY 2023 Highlights:

  • Group Net Profit came in at AED 7,010 million, up 26% YoY compared to AED 5,552 million, driven by rising non-funded income and lower impairment charges.
  • Net financing and sukuk investments reached AED 268 billion, up 12% YoY. Gross new underwriting and sukuk investments recorded AED 88 billion vs AED 63 billion in FY 2022. Over the year, the frequency of early settlement payments has retracted tremendously by 31% YoY leading to net growth in new financing and sukuk disbursements to AED 29 billion.
  • Total income reached to AED 20,142 million compared to AED 14,101 million, a solid expansion of 43% YoY.
  • Net Operating Revenues showed a robust increase of 11% YoY to reach AED 11,665 million.
  • Net Operating Profit came at AED 8,503 million, a 10% YoY increase compared to AED 7,734 million in FY 2022.
  • Balance sheet expanded strongly by 9% YoY to AED 314 billion. 
  • Customer deposits increased to AED 222 billion, up 12% YoY with CASA comprising 37% of DIB’s deposit base. Traction towards investment deposits has continued increasing their contribution to total deposits to 63% from 56% in YE 2022.
  • Impairment charges registered AED 1,396 million against AED 2,103 million in FY 2022, down by 34%. Separately, 4Q 2023 registered impairment reversal of AED 13 million down 102% YoY and 103% QoQ.
  • NPF falling largely below the 6% mark, now at 5.4% compared to 6.5% at YE2022, lower by 110 bps YoY and 60 bps QoQ. Cash Coverage rose to 90%, up 1200 bps YoY.
  • Cost to income ratio at 27.1%, staying below guidance.
  • Liquidity remains healthy with LCR at 188.7%.
  • Continued improvement on ROA now at 2.3% (+30 bps YoY) and ROTE at 20% (+300 bps YoY).
  • Capitalization levels remain robust with CET1 at 12.8% (-10 bps YoY) and CAR at 17.3% (-30 bps YoY), both well above the minimum regulatory requirement. Total equity now stands at AED 47 billion.

Read the full report here.

-Ends-

About Dubai Islamic Bank:

Established in 1975, Dubai Islamic Bank is the largest Islamic bank in the UAE by assets and a public joint stock company listed on the Dubai Financial Market. Spearheading the evolution of the global Islamic finance industry, DIB is also the world’s first full service Islamic bank and the second largest Islamic bank in the world. With Group assets in excess of USD 80bln and market capitalization of nearly USD 9bln, the group operates with a workforce of more than 10,000 employees and around 500 branches in its vast global network across the Middle East, Asia and Africa. Serving over 3 million customers across the Group, DIB offers an increasing range of innovative Shariah compliant products and services to retail, corporate and institutional clients.

In addition to being the first and largest Islamic bank in the UAE, DIB has a significant international presence as a torchbearer in promoting Shariah-compliant financial services across a number of markets worldwide. The bank has established DIB Pakistan Limited, a wholly owned subsidiary which is the first Islamic bank in Pakistan to offer Priority & Platinum Banking, as well as the most extensive and innovative portfolio of Alternate Distribution Channels. The launch of Panin Dubai Syariah Bank in Indonesia early in 2017 marks DIB’s first foray in the Far East, the bank owns a nearly 25% stake in the Indonesian bank. Additionally, in May 2017, Dubai Islamic Bank PJSC was given the license by the Central Bank of Kenya (CBK) to operate its subsidiary, DIB Kenya Ltd. DIB has been designated as D-SIB (Domestic Systemically Important Bank) in 2018 in UAE. In early 2020, DIB completed the acquisition of Noor Bank, which solidifies its position as a leading bank in the global Islamic finance industry.

The Bank’s ultimate goal is to make Islamic finance the norm, rather than an alternative to conventional banking worldwide. DIB has won a range of accolades that are testament to these efforts across diversified areas, including retail, corporate and investment banking, as well as CSR and consultancy services. DIB has been named the Best Islamic Bank in various prestigious ceremonies and recognized for its outstanding performance amongst the world’s Islamic Banks, marking it a clear indication of the bank’s leadership position in the Islamic finance sector.