Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE by assets, reported a 10% increase in revenue for the first half of 2026, driven by a rise in Islamic financing income and commissions.
Revenue reached over AED 12B ($3.3B), an increase from AED 11B recorded in the same period of FY25 according to a statement made to the Dubai Financial Market. Profit after tax remained stable at AED 3.7B over the six months.
Operating profit, which excludes provisions for loan losses and taxes, improved 6% YoY AED 4.8B.
Impairment Charges Surge
However, impairment charges saw a significant increase, rising 91% from the previous year to AED 489M in the first half of the year.
Chairman Mohammed Ibrahim Al-Shaibani noted that the first half of 2026 presented a challenging operating environment influenced by geopolitical factors, fluctuating interest rate expectations and varying market confidence.
Mitigating Headwinds
The importance of sound governance, strong balance sheets and responsible capital allocation has helped DIB mitigate headwinds.
For Q2 of FY26, both net profit and revenue experienced stability, reported at AED 1.9B and AED 3.2B respectively.
The Investment Corporation of Dubai retains a significant stake of nearly 28% in the lender.
Despite these results, DIB’s shares on the Dubai Financial Market closed 2.2% lower at AED 7.52 on Wednesday and have decreased by 19% year to date.
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