DUBAI, UAE– Dubai Islamic Bank (DIB) revealed a net profit of AED 1.506 billion (US$410 million), up 12 percent year-on-year (YoY) compared to AED1.345 billion ($370 million) in the first quarter of 2023.
The growth was driven by rising core revenues and effective cost management, DIB, the largest Islamic bank in the UAE, said in the report released Wednesday.
Net financing and sukuk investments stood at AED 240 billion ($65.35 billion), up 1 percent YTD with nearly AED 21 billion ($5.72 billion) in new underwriting during Q1 2023 vs AED 15 billion (4.08billion) in Q1 2022.
DIB’s total income rose to AED 4.431 billion ($1.21billion) compared to AED 3.016 billion ($820 million), a solid expansion of 47 percent YoY.
Net operating revenues showed a robust 12 percent YoY to reach AED 2.755 billion ($750 million), while net operating profit stood at AED 2.013 billion ($550 million), a solid increase of 14 percent YoY compared to AED 1.770 billion in Q1 2022.
Moreover, the bank’s balance sheet expanded by 1.3 percent YTD to AED 292 billion ($79.5 billion), while customer deposits settled at AED 198 billion with CASA comprising 40 percent of DIB’s deposit base.
Mohammed Ibrahim Al Shaibani, Director-General of the Ruler of Dubai’s Court and Chairman of Dubai Islamic Bank, said, “The UAE’s economy continue to expand at a fast rate supported by high energy prices, increasing business trade and activities and the return of tourism which has boosted domestic retail spending.”
He said, “The banking sector remains well-insulated from the global contagion and continues to be on a solid footing with steady growth in their balance sheets and rising profitability levels with DIB closing the first quarter of the year with very strong and remarkable set of results.”
He added, “The nation’s transition into a green economy is well underway and we at DIB remain fully committed towards sustainable development and have integrated a full-fledged sustainability strategy in our medium- and long- term goals.”
Al Shaibani said, “In addition with this commitment, we also successfully issued our 2nd sustainable sukuk (US$1 billion) during the quarter which was very well accepted and oversubscribed in the financial markets.”
Dr. Adnan Chilwan, Group Chief Executive Officer, said, “DIB’s profitability during the first quarter continues to impress with net income reaching AED 1.5 billion, up 12 percent YoY, on the back of stronger margins and ongoing cost controls.”
He said, “This is fueled by both corporate and retail financing underpinning DIB’s strong market position and business appetite for growth. Our fixed income portfolio has now reached AED 55 billion, a 6 percent YTD growth as the bank continues to invest in primarily highly rated sovereign sukuk instruments.”