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- Net profit of AED 4.8 billion, strong growth of 18% YoY.
- Balance sheet crossing a new milestone reaching AED 313 billion, up 9% YTD.
- Asset quality improves to 6.0% down 50 bps YTD, beating guidance.
- Continued improvement in RoTE registering 18.4%, up 140 bps YTD.
Dubai: Dubai Islamic Bank (DFM: DIB), the largest Islamic bank in the UAE, today announced its results for the period ending September 30, 2023.
9M 2023 Highlights:
- Group Net Profit came in at AED 4,823 million, up 17.6% YoY compared to AED 4,101 million. Growth was driven by rising core revenues, non-funded income and lower impairment charges.
- Net financing and sukuk investments at AED 265 billion, up 11.3% YTD. Gross new underwriting and sukuk investments during 9M 2023 reached AED 72 billion vs AED 43 billion in 9M 2022.
- Total income reached to AED 14,548 million compared to AED 9,873 million, a solid expansion of 47.4% YoY.
- Net Operating Revenues showed a robust increase of 11.7% YoY to reach AED 8,547 million.
- Net Operating Profit now at AED 6,286 million, a 12% YoY increase compared to AED 5,612 million in 9M 2022.
- Balance sheet expanded strongly by 8.7% YTD to cross to AED 313 billion.
- Customer deposits increased to AED 221 billion, up 11.2% YTD with CASA comprising 37% of DIB’s deposit base. Traction towards investment deposits has continued increasing their contribution to total deposits to 63% from 56% in YE 2022.
- Impairment charges registered AED 1,409 million against AED 1,450 million in 9M 2022, down by 3.0%. Similarly, 3Q 2023 impairments are also down by 10.5% YoY and 2.7% QoQ.
- NPF improved to 6.04% compared to 6.46% in FY2022, lower by 42 bps YTD and 31 bps QoQ.
- Cost to income ratio further improved to 26.5%, down 20 bps YoY and stable QoQ.
- Liquidity remains healthy with LCR at 166%.
- Continued improvement on ROA now at 2.2% (+20 bps YTD) and ROTE at 18.4% (+140 bps YTD).
- Capitalization levels remain robust with CET1 at 13.6% (+70bps YTD) and CAR at 18.1% (+50bps YTD), both well above the minimum regulatory requirement. Total equity now stands at AED 46 billion.
-Ends-
About Dubai Islamic Bank:
Established in 1975, Dubai Islamic Bank is the largest Islamic bank in the UAE by assets and a public joint stock company listed on the Dubai Financial Market. Spearheading the evolution of the global Islamic finance industry, DIB is also the world’s first full service Islamic bank and the second largest Islamic bank in the world. With Group assets in excess of USD 80bln and market capitalization of nearly USD 9bln, the group operates with a workforce of more than 10,000 employees and around 500 branches in its vast global network across the Middle East, Asia and Africa. Serving over 3 million customers across the Group, DIB offers an increasing range of innovative Shariah compliant products and services to retail, corporate and institutional clients.
In addition to being the first and largest Islamic bank in the UAE, DIB has a significant international presence as a torchbearer in promoting Shariah-compliant financial services across a number of markets worldwide. The bank has established DIB Pakistan Limited, a wholly owned subsidiary which is the first Islamic bank in Pakistan to offer Priority & Platinum Banking, as well as the most extensive and innovative portfolio of Alternate Distribution Channels. The launch of Panin Dubai Syariah Bank in Indonesia early in 2017 marks DIB’s first foray in the Far East, the bank owns a nearly 25% stake in the Indonesian bank. Additionally, in May 2017, Dubai Islamic Bank PJSC was given the license by the Central Bank of Kenya (CBK) to operate its subsidiary, DIB Kenya Ltd. DIB has been designated as D-SIB (Domestic Systemically Important Bank) in 2018 in UAE. In early 2020, DIB completed the acquisition of Noor Bank, which solidifies its position as a leading bank in the global Islamic finance industry.
The Bank’s ultimate goal is to make Islamic finance the norm, rather than an alternative to conventional banking worldwide. DIB has won a range of accolades that are testament to these efforts across diversified areas, including retail, corporate and investment banking, as well as CSR and consultancy services. DIB has been named the Best Islamic Bank in various prestigious ceremonies and recognized for its outstanding performance amongst the world’s Islamic Banks, marking it a clear indication of the bank’s leadership position in the Islamic finance sector.