Dubai Islamic Bank Reports Exceptional 2023 Performance with 43% YoY Rise in Total Income
Dubai, The Gulf Observer: Dubai Islamic Bank (DIB) today announced its financial results for the period ending December 31, 2023, showcasing a robust performance with a remarkable 43% year-on-year (YoY) increase in total income, reaching AED 20 billion.
In an official statement, the bank revealed a stellar net profit of AED 7 billion, reflecting a remarkable growth of 26% YoY. The expansion is indicative of the bank’s continuous efforts in strategic development and maintaining its leadership in the global Islamic finance domain. The Balance Sheet also witnessed significant growth, reaching AED 314 billion, a YoY increase of 9%.
Asset quality demonstrated improvement, with the non-performing financing ratio decreasing to 5.4%, down by 110 basis points YoY, surpassing guidance. Return on Tangible Equity (RoTE) reached 20%, registering a notable 300 basis points YoY increase, also exceeding guidance. The bank proposed a dividend of 45%, subject to shareholder approval, underlining the commitment to delivering returns to shareholders.
Group Net Profit stood at AED 7,010 million, up 26% YoY, driven by a surge in non-funded income and reduced impairment charges. Net financing and sukuk investments grew by 12% YoY, reaching AED 268 billion. Gross new underwriting and sukuk investments recorded a significant increase from AED 63 billion in FY 2022 to AED 88 billion. The frequency of early settlement payments saw a notable reduction by 31% YoY, contributing to a net growth in new financing and sukuk disbursements to AED 29 billion.
Total income soared to AED 20,142 million, a substantial 43% YoY expansion. Net Operating Revenues witnessed an 11% YoY increase, reaching AED 11,665 million, while Net Operating Profit stood at AED 8,503 million, reflecting a 10% YoY growth compared to FY 2022.
Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank, commented on the outstanding performance, stating, “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.”
Highlighting the commitment to sustainability, Al Shaibani announced DIB’s partnership with the UAE Banks Federation to deliver AED 1 trillion in sustainable finance over the coming years. He emphasized the bank’s role in supporting positive climate actions in the UAE and beyond through a long-term Environmental, Social, and Governance (ESG) strategy.
