Rising core revenues, non-funded income and lower impairment charges helped Dubai Islamic Bank (DIB), the biggest Islamic lender in the UAE, post stellar numbers as it released its financial result for the third quarter of 2023 and the first nine months of the year.
Total net income for the three months ending September 30 rose to AED4.82 billion ($1.3 billion), up from AED4.1 billion a year earlier. For the first nine months of the year, the total income was AED14.5 billion ($3.95 billion), up 47 percent compared to the same period last year.
Dubai Islamic Bank’s net operating profit stood at AED6.2 billion, up 12 percent compared to AED 5.6 billion in 9M 2022. Net operating revenues increased 11.7 percent YoY to reach AED8,547 million.
Mohammed Ibrahim Al Shaibani, Chairman of Dubai Islamic Bank, commented: “The UAE economy continues to thrive with strong fundamentals amidst the volatile global economic environment. The recent IMF growth figures on the UAE demonstrate the country’s resilience and the confidence that businesses and investors have in the economy.
“The domestic banking sector remains solid with expanding balance sheets and improving asset quality and profitability. DIB’s 9M 2023 performance has been remarkable generating more than AED 14.5 billion in total income, a stellar growth of 47 percent YoY.”
Among other highlights, net financing and sukuk investments were at AED265 billion ($72.16 billion), up 11.3 percent year to date. Gross new underwriting and sukuk investments for the first nine months reached AED72 billion ($19.6 billion) as against AED43 billion ($11.7 billion) in 2022.
Total customer deposits stood at AED221 billion ($60.18 billion), rising 11.2 percent year to date, while impairment charges stood at AED1.409 billion, lower than the previous year’s AED1.45 billion. Cost to income ratio improved to 26.5 percent, down 20 bps YoY.
Dubai Islamic Bank’s remarkable performance
Dr Adnan Chilwan, Group Chief Executive Officer of Dubai Islamic Bank, said the bank’s performance was ‘exceptional’ and that it is committed to sustainability efforts in the UAE.
“DIB’s profitability during the nine months surged with net profit reaching AED4.8 billion, up 18 percent YoY, supported by higher revenues, controlled costs and lower impairments,” said Chilwan.
“DIB’s gross new financing and sukuk underwriting has been monumental during the reporting period reaching AED72 billion, up 69 percent YoY fuelled by all business segments, particularly the corporate accounts, underpinning the bank’s robust growth strategy.
“Accordingly, the bank’s balance sheet crossed the AED300 billion mark for the first time, reaching AED313 billion ($85.23 billion), a rise of 9 percent YTD.
“Our commitment to sustainability remains a top agenda for DIB with various bank-wide strategic initiatives aligned on this important theme. Our recently launched ‘One Tree for Everyone’, ongoing collaboration with the COP28 team and regulators and our fast-growing sustainable finance portfolio will help drive economic and social growth in the country.”
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