Dubai, UAE — Dubai Islamic Bank (DIB), the United Arab Emirates’ largest Islamic lender, reported a broadly flat first-half net profit on Tuesday, as higher revenue and financing growth offset a challenging operating environment marked by geopolitical tensions and shifting interest rate expectations.
The bank said net profit after tax for the six months ended June 30 stood at AED3.736 billion ($1.02 billion), compared with AED3.73 billion a year earlier. Pre-tax profit rose 1 percent to AED4.334 billion.
Gross revenue increased 10 percent year on year to AED12.439 billion, supported by growth in both funded and non-funded income streams, while operating profit rose 6 percent to AED4.823 billion.
Net financing assets grew 7 percent since the start of the year to AED281 billion after the bank extended AED43 billion in new financing during the period. Customer deposits rose 2 percent to AED327 billion, while total assets increased to AED423 billion.
Chairman Mohammed Ibrahim Al-Shaibani said the first half was shaped by geopolitical developments, changing interest rate expectations and fluctuations in market confidence, but added that the UAE economy remained resilient, supported by diversification and sound economic policies.
He said DIB’s successful issuance of a $1 billion Additional Tier 1 sukuk underscored the bank’s access to international capital markets and strengthened its ability to support future growth.
Group Chief Executive Officer Adnan Chilwan said demand for the bank’s Sharia-compliant products and services continued to underpin revenue growth, while profitability remained strong despite a more challenging operating backdrop.
He said the bank’s non-performing financing ratio improved to 2.4 percent, with the cost of risk remaining low at 28 basis points and cash coverage reaching 122 percent.
DIB said its capital position remained robust, with a Common Equity Tier 1 ratio of 13.0 percent, a capital adequacy ratio of 16.1 percent, a liquidity coverage ratio of 140 percent and a net stable funding ratio of 105 percent.
The lender also reported a 16 percent year-on-year increase in registered digital banking users and said it had extended AED3.1 billion in sustainable finance, alongside AED2.1 billion in sustainability-linked financing since the beginning of the year.
