DIB logs 15% net profit growth reaching AED3.1bn in H1'23

DIB logs 15% net profit growth reaching AED3.1bn in H1'23

DUBAI, 26th July, 2023 (WAM) -- Dubai Islamic Bank (DFM: DIB), the largest Islamic bank in the UAE, today announced its financial results for the period ending 30th June, 2023. The bank's group net profit came in at AED 3.111 billion, up 15 percent YoY compared to AED 2.7 billion, driven by rising core revenues, controlled impairments and effective cost management.

DIB's net financing and sukuk investments stood at AED 251 billion, up 5.3 percent YTD, while gross new underwriting and sukuk investments during H1'23 reached AED 45 billion as compared to AED 33 billion in H1'22.

The bank recorded AED 9.309 billion in total income, up 49 percent YoY; AED 5,580 million in net operating revenues, a robust 11 percent growth YoY, with net operating profit settling at AED 4,109 million, a 12 percent increase YoY compared to AED 3,684 million in H1'22.

Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank, commented, "Amidst moderating global growth, the UAE economy continues to expand driven by recovering tourism, real estate and rising financial markets. With Dubai alone welcoming more than 8.5 million visitors in the first half and with DFM rising by 14 percent year to date, this clearly indicates a strong domestic economy supported by the UAE’s non-oil sector which is estimated to grow at above 4 percent this year."

"The banking sector continue to remain resilient with rising profitability, strong and growing credit and deposit portfolio supported by the private sector, GREs as well as the retail sector. This expansion is reflected in a continued upward momentum on PMI levels, growing domestic population and increasing FDI inflows.

“A strong set of first half results with total income reaching AED 9.3 billion up 49 percent YoY with rising profitability ratios on ROA and RoTE is a clear indication of the bank’s robust financial position, improved cost efficiencies and strong growth across its consumer and corporate business portfolios.”

Dr. Adnan Chilwan, Group Chief Executive Officer, DIB, said, “Dubai has been on a remarkable recovery path during the first half of the year with most key sectors depicting strong levels of growth. Additionally, the Dubai Financial Market rose by 14 percent YTD mirroring the resilience of the Emirate’s corporates. The various business and economic reforms placed in by government have reinforced Dubai as a leading global city and DIB’s strong first half results clearly shows that the bank is at the forefront of supporting the national growth agendas.”

“Sectors such as tourism, construction, real estate and investment in clean energy provide tailwinds to an expanding non-oil economy further reiterating DIB’s strategic alignment to the UAE’s expansionary agenda,” he added. “DIB’s profitability during the first half has once again been notable with net profit reaching AED 3.1 billion, up 15 percent YoY, reflecting higher revenues, controlled costs and impairments and a keen focus on executing our medium-term strategic objectives.

“We have reached another key historic milestone as the bank’s balance sheet has now reached AED 300 billion, a strong rise of 4 percent YTD. The financing book grew by 2 percent YTD to AED 190 billion across corporate and consumer and further reinforced by a surge in our digital sales and transactions particularly on the consumer business. Including Sukuk, the bank has grown 5.3 percent well ahead already of the full year growth guidance.”