Driven by rising non-funded income and lower impairment charges, Dubai Islamic Bank (DIB) announced a 43 percent rise in total income to AED20 billion ($5.45 billion) and a 26 percent growth in net profit to a record AED7 billion ($1.91 billion) for the period ending December 31, 2023.
In a mandatory filing with the Dubai Financial Market (DFM), the bank also said its balance sheet grew to AED314 billion ($85.5 billion), up 9 percent year-on-year, while the asset quality improved to 5.4 percent, which was down 110 bps YoY.
DIB proposed dividend of 45 percent, subject to shareholders’ approval.
Group net profit came in at AED7,010 million ($1.91 billion), up from AED5,552 million ($1.51 billion).
Mohammed Ibrahim Al Shaibani, Director-General of The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank, commented: “The UAE economy continues to expand amidst the tightening of global financial conditions owing to elevated inflation levels and moderate global growth. The GCC financial markets had a strong year with Dubai showcasing a robust double-digit gain of more than 20 percent 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.
“2023 has been an exceptional year for DIB as the bank delivered its highest profitability in history. A stellar AED7,010 million in net profits rising by 26 percent YoY is a result of our consistent strategic efforts to grow this dynamic institution and maintain its leadership in the global Islamic finance space.”
Net financing and sukuk investments reached AED268 billion, up 12 percent YoY. Gross new underwriting and sukuk investments recorded AED88 billion vs AED63 billion in FY 2022. Net operating revenues increased 11 percent YoY to reach AED11,665 million.
Dr Adnan Chilwan, Group Chief Executive Officer, added: “The expansionary agenda continues as the balance sheet grew further by 9 percent YoY to AED314 billion. Financing book rose by 7 percent YoY to AED199 billion across corporate and consumer businesses reinforced by a surge in corporate cross-border and private sector financing. Including Sukuk, the bank’s financing and sukuk assets have grown 12 percent, surpassing full-year guidance.”
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