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Dubai Islamic Bank (DIB), the biggest Islamic lender in the UAE, saw its net profit for the full year 2023 rise to its highest level, supported by higher non-funded income and lower impairment charges.
Total net profit for the year reached AED7.01 billion ($1.9 billion), up by 26% compared to AED5.552 billion a year earlier, the lender said in a statement on the Dubai Financial Market (DFM).
Net profit for the fourth quarter of 2023 also rose by 51% year-on-year and 28% quarter-on-quarter to AED2.186 billion.
“2023 has been an exceptional year for DIB as the bank delivered its highest profitability in history,” noted Mohammed Ibrahim Al Shaibani, Chairman of DIB.
During 2023, DIB’s total income reached AED20.142 billion, up by 43% from the previous year, while net operating revenues and net operating profit rose by 11% and 10%, respectively.
The lender’s balance sheet grew by 9% to AED314 billion.
Total customer deposits jumped by 12% to AED222 billion.
Impairment charges dropped by 34% to AED1.396 billion from AED2.103 billion.
Al Shaibani noted that the UAE economy continued to expand despite tightening global financial conditions, while the GCC financial markets also posted robust double-digit gains of more than 20%, supported by a strong pipeline of IPOs and rising volume trades.
“The banking sector also showed strong resilience with healthy and growing balance sheets and higher earnings.”
(Writing by Cleofe Maceda; editing by Seban Scaria)
