Dubai Islamic Bank (DIB) delivered robust first-half 2024 results, with pre-tax profit climbing 18% year-on-year to AED 3.721 billion — comfortably surpassing the $1 billion mark — while total income rose 21% to AED 11.292 billion. The figures confirmed DIB's continued momentum as one of the UAE's largest Islamic lenders.
Strong Profit Growth Across the Board
Net profit for the six months ended June 2024 increased 8.6% to AED 3.378 billion ($920 million), reflecting solid underlying performance even as impairment charges fell sharply.
Impairment charges dropped 32% compared to H1 2023, falling to AED 652 million ($177.5 million) from AED 959 million the prior year. The non-performing financing (NPF) ratio improved to 4.99%, down 41 basis points versus year-end 2023, while the coverage ratio rose to 95%.
Balance Sheet Expansion and Deposit Growth
DIB's total assets grew 2.7% year-to-date to AED 323 billion ($87.95 billion). Net financing and sukuk investments reached AED 278 billion, up 3.8% year-to-date.
Customer deposits increased 5.4% to AED 234 billion. Notably, the share of Current and Savings Accounts (CASA) within the deposit base expanded by 500 basis points to reach 42%, up from 37% at the beginning of the year — a positive indicator for the bank's cost of funds.
Consumer banking assets grew 7% year-to-date to AED 60 billion, with new underwriting up 20% year-on-year to AED 12.3 billion. Corporate banking revenue rose 9% year-on-year, while the sukuk investment portfolio expanded 15% year-to-date to AED 79 billion.
Chairman: UAE Economy Provides Solid Foundation
His Excellency Mohammed Ibrahim Al Shaibani, Director-General of the Ruler's Court of Dubai and Chairman of Dubai Islamic Bank, attributed the results to the resilience of the UAE economy and stable global monetary conditions.
"The overall banking system in the UAE continues to be well capitalised with plentiful capital to support balance sheet expansion notwithstanding the global credit squeeze," Al Shaibani said. "The proven ability of the UAE to stage a recovery is observable today, especially as indicators like tourism, hospitality, transportation, and the financial sector are on the upswing, as evidenced by the improvement in the quality of assets and profitability."
He added that DIB's leadership in Islamic capital markets is evident through the facilitation of transactions globally, particularly in the ESG space, having raised over AED 10 billion in recent years.
CEO Highlights Record Income Milestone
Dr. Adnan Chilwan, Group Chief Executive Officer of Dubai Islamic Bank, highlighted the significance of crossing the AED 11 billion income threshold.
"The first half of the year was quite impressive as total income was recorded at more than AED 11.3 billion, up 21% year-on-year," Dr. Chilwan said, noting that the bank achieved 18% growth in group pre-tax profit at AED 3.7 billion for H1 2024.
Dr. Chilwan also pointed to ESG progress, noting that sustainable assets grew 9% year-to-date and that DIB facilitated over $6 billion in sustainable and green debt capital markets deals.
Key Ratios Remain Solid
DIB maintained strong capital and liquidity ratios through the period. The CET1 ratio stood at 13.7% (up 90 basis points), and the capital adequacy ratio reached 18.1% (up 80 basis points). The liquidity coverage ratio was 145.9%, well above regulatory minimums.
Return on assets (post-tax) was 2.2%, while the pre-tax return on tangible equity stood at 20.2%. The cost-to-income ratio was 27.8%, reflecting disciplined expense management.
