Dubai, UAE – Dubai Islamic Bank on Tuesday reported a robust rise in total income by 43% YoY to approximately $5.4 billion.
Net profit rose by approximately $1.89 billion, a stellar growth of 26% YoY. The bank’s Balance Sheet increased to approximately $84.78 billion, up 9% YoY. Similarly, Asset quality improved to approximately 1.46% 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%, was announced subject to shareholder approval.
According to a bank statement, the Group Net Profit came in at approximately $1.9 billion, up 26% YoY compared to approximately $1.5 billion, driven by rising non-funded income and lower impairment charges. Net financing and sukuk investments reached approximately $72.36 billion, up 12% YoY. Gross new underwriting and sukuk investments recorded approximately $23.76 billion vs approximately $17.01 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 approximately $7.83 billion.
Total income reached approximately $5.43 billion compared to approximately $3.81 billion, a solid expansion of 43% YoY. Net Operating Revenues showed a robust increase of 11% YoY to reach approximately $3.15 billion. Net Operating Profit came at approximately $2.30 billion, a 10% YoY increase compared to approximately $2.09 billion in FY 2022.
“The UAE economy continues to expand amidst the tightening of global financial conditions owing to elevated inflation levels and moderate global growth,” Mohammed Ibrahim Al Shaibani, Director-General of The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank, said:.
“The GCC financial markets had a strong year with Dubai showcasing a robust double-digit gain of more than 20% YoY supported by a strong pipeline of IPOs and rising volume trades. The banking sector also showed strong resilience with healthy and growing balance sheets and higher earnings,” he added
Al Shaibani added that the year 2023 has been an exceptional year for DIB as the bank delivered its highest profitability in history.
“A stellar $.9 billion in net profits rising by 26% YoY is a result of our consistent strategic efforts to grow this dynamic institution and maintain its leadership in the global Islamic finance space,” he said. “Supporting the UAE’s Year of Sustainability, we, together with the UAE Banks Federation commit to delivering #270 billion in sustainable finance over the coming years. DIB has already been at the forefront of this commitment with $473 million of sustainable sukuks already issued supporting a growing ESG portfolio. With a long-term ESG strategy set in place, the bank will continue to drive positive climate actions in the UAE and beyond in the years to come.”