Dubai Islamic Bank reported an 8.6% surge in H1 2024 net profit to Dh3.38 billion.
The bank’s balance sheet expanded by 2.7% year-to-date to Dh323 billion, driven by robust growth in various sectors. Total income rose by 21% year-on-year to Dh11.3 billion. Group pre-tax profit surged by 18% year-on-year to Dh3.72 billion. The bank’s net financing and sukuk investments grew by 3.8% year-to-date to Dh278 billion, with gross new underwriting and sukuk investments totalling Dh43.4 billion in the first half of 2024.
“The bank’s leadership in the Islamic Capital Markets space is clearly visible not just through facilitation of transactions globally but also in its own fundraising particularly in the ESG space having raised over Dh10 billion in the last couple of years,” said HE Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank.
“International growth remains steady as central banks around the world continue to pause rate hikes, leading to more moderate global inflation levels and providing macro-economic stability to the international economy,” stated Dr Adnan Chilwan, Group CEO. “The UAE remains resilient with key sectors showing positive momentum such as tourism, hospitality, transportation, and the financial sector, which has demonstrated improving asset quality and rising profitability.”
Customer deposits rose by 5.4% year-to-date to Dh234 billion, with current account and savings account (CASA) deposits increasing to 42% of total deposits, up from 37% at the beginning of the year. Impairment charges decreased by 32% year-on-year to Dh652 million, and the non-performing financing (NPF) ratio improved to 4.99%, down 41 basis points YTD.
The bank’s cost-to-income ratio increased by 140 basis points year-on-year to 27.8% as it strengthened key areas in line with its growth strategy. Return on average assets (ROA) and return on tangible equity (ROTE) remained stable at 2.2% and 18%, respectively, with pre-tax ROA and ROTE at 2.4% and 20.2%.
