Dubai Islamic Bank records nine month pre-tax profit of Dh6 billion

Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE, on Tuesday announced group pre-tax profit for the first nine months of 2024 reached Dh6.002 billion, up 23 per cent year on year, while group net profit came in at Dh5.448 billion, up 13 per cent year on year.

For the third quarter, DIB’s pre-tax profit was Dh2.281 billion, up 32.1 per cent year on year.

Net financing and sukuk investments reached Dh286 billion, up 7 per cent year to date. Net financing growth picked up on a year to date basis at 3.7 per cent. Gross new underwriting and sukuk investments recorded Dh68.8 billion in 9M 2024.

Total income reached Dh16.995 billion compared to Dh14.548 billion, a solid expansion of 16.8 per cent year on year.

Net operating revenues showed a robust increase of 6.3 per cent year on year to reach Dh9,085 million.

The bank’s balance sheet rose by 4.7 per cent year to date to reach Dh329 billion.

Customer deposits increased to Dh237 billion, up 6.7 per cent year to date, with current and savings accounts’ (Casa) deposit contributing over 38.1 per cent, up more than 150 bps from 36.6 per cent at the beginning of the year. Impairment charges came at Dh530 million, significantly declining by 62 per cent year on year against Dh1,409 million in 9M 2023.

NPF improved to 4.27 per cent compared to 5.40 per cent in YE 2023, lower by 113 bps year to date. Cash Coverage now at 97 per cent.

Cost to income ratio up by 160 bps year on year to 28.1 per cent, as the bank continue to strengthen its key areas and functions in line with its growth strategy.

Mohammed Ibrahim Al Shaibani, Director-General of The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank, said: “The UAE continues its robust progress towards economic growth & development despite global uncertainties and regional conflicts. With inflation now showing signs of moderation, central banks have now embarked on lowering rates generating more favorable financial market and economic conditions. UAE’s growth projections remain amongst the strongest in the region driven by rising population, growing tourism and enhanced trading volumes. Accordingly, DIB’s nine-month performance has been remarkable with total income of nearly Dh17 billion, a robust 17 per cent year on year rise. The bank continues to secure strong new origination from our growing customer base across the country and the region at large.”

Dr. Adnan Chilwan, group chief executive officer, said: “The UAE banking system remain robust despite the global market and regional volatilities as exhibited by rising lending as well as deposit volumes. The strong performance of the sector is driven by a positive economic outlook with increasing business activities, improving asset quality, as well as rising profitability. All business units achieved positive performance with both corporate and consumer portfolios adding new net lending of more than Dh7 billion across several sectors. Along with a solid growth in the fixed income book, the bank’s financing and sukuk portfolio reached Dh286 billion, up 7 per cent beating year end guidance by 180 bps.”