Dubai Islamic Bank reported a 26% increase in net profit to Dh7 billion compared to Dh5.5 billion, driven by rising non-funded income and lower impairment charges.
Net financing and sukuk investments reached Dh268 billion, up 12% year-on-year. Gross new underwriting and sukuk investments recorded Dh88 billion compared to Dh63 billion in 2022.
“Over the year, the frequency of early settlement payments has retracted tremendously by 31% year-on-year, leading to net growth in new financing and sukuk disbursements to Dh29 billion,” it said in a statement on Tuesday.
The profit boost also prompted the lender to raise its dividend to 45% of the stock value held by a shareholder from 30% earlier.
The bank’s total income reached Dh20.14 billion compared to Dh14.1 billion, up 43% year-on-year. Net operating revenues surged 11% year-on-year to Dh11.66 billion, while its net operating profit came at Dh8.5 billion, a 10% year-on-year increase compared to Dh7.7 billion in 2022.
“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,” said HE Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank. “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,” he added.
DIB’s balance sheet expanded by 9% YoY, reaching Dh314 billion, and customer deposits increased by 12% to Dh222 billion, with Current and Savings Accounts (CASA) comprising 37% of the deposit base. Impairment charges registered at Dh1.3 billion, reflecting a 34% decrease from FY 2022.
“Over the year 2023, Dubai’s economy has propelled at an exceptional rate due to the structural and cyclical factors as well as deleveraging,” said Dr Adnan Chilwan, Group CEO. “Dubai’s PMI data has ended the year at an exceptional level, ticking at 57.7 in December, marking a healthy acceleration.”
“Banks’ credit has grown, reflecting ample opportunity and liquidity aligned with the buoyant economic activities across all industries,” he added.
