Dubai Islamic Bank today announced its results for the period ending December 31, 2023 and reported a robust rise in total income by 43% YoY to AED20 billion.
Net profit of AED 7 billion, a stellar growth of 26% YoY, was announced in an official statement that also indicated expansion continues as the bank’s Balance Sheet rises to AED 314 billion, up 9% YoY. Asset quality improved to 5.4% down 110 bps YoY, beating guidance.
Shareholder returns continue to grow with RoTE at 20%, up 300 bps YoY, beating guidance. Proposed dividend of 45%, was announced subject to shareholder approval.
According to a bank statement, the Group Net Profit came in at AED7,010 million, up 26% YoY compared to AED 5,552 million, driven by rising non-funded income and lower impairment charges. Net financing and sukuk investments reached AED 268 billion, up 12% YoY. Gross new underwriting and sukuk investments recorded AED 88 billion vs AED63 billion in FY 2022. Over the year, the frequency of early settlement payments has retracted tremendously by 31% YoY leading to net growth in new financing and sukuk disbursements to AED 29 billion. Total income reached to AED 20,142 million compared to AED 14,101 million, a solid expansion of 43% YoY.Net Operating Revenues showed a robust increase of 11% YoY to reach AED 11,665 million. Net Operating Profit came at AED 8,503 million, a 10% YoY increase compared to AED 7,734 million in FY 2022.
Mohammed Ibrahim Al Shaibani Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank, said: “The UAE economy continues to expand amidst the tightening of global financial conditions owing to elevated inflation levels and moderate global growth. The GCC financial markets had a strong year with Dubai showcasing a robust double-digit gain of more than 20% YoY 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.”
He added that the year 2023 has been an exceptional year for DIB as the bank delivered its highest profitability in history. “A stellar AED 7,010 million in net profits rising by 26% YoY is a result of our consistent strategic efforts to grow this dynamic institution and maintain its leadership in the global Islamic finance space. Supporting the UAE’s Year of Sustainability, we, together with the UAE Banks Federation commit to delivering AED 1 trillion in sustainable finance over the coming years. DIB has already been at the forefront of this commitment with USD 1.75 bn of sustainable sukuks already issued supporting a growing ESG portfolio. With a long term ESG strategy set in place, the bank will continue to drive positive climate actions in the UAE and beyond in the years to come.”
Source: WAM
