Dubai Islamic Bank profit up 12% to AED1.5bn in Q1 2023

DUBAI / WAM

Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE, on Wednesday announced its results for the period ending on March 31.
The bank’s net profit came in at AED 1.506 billion, up 12 percent year-on-year (YoY) compared to AED1.345 billion, a growth was driven by rising core revenues and effective cost management. Net financing and sukuk investments stood at AED240 billion, up 1 percent YTD with nearly AED 21 billion in new underwriting during  Q1 2023 vs AED 15 billion in Q1 2022.
DIB’s total income rose to AED 4.431 billion compared to AED 3.016 billion, a solid expansion of 47 percent YoY. Net operating revenues showed a robust 12 percent YoY to reach AED 2.755 billion, while net operating profit stood at AED 2.013 billion, a solid increase of 14 percent YoY compared to AED 1.770 billion in Q1 2022.
Moreover, the bank’s balance sheet expanded by 1.3 percent YTD to AED 292 billion, while customer deposits settled at AED 198 billion with CASA comprising 40 percent of DIB’s deposit base.
Mohammed Ibrahim Al Shaibani, Director-General of His Highness the Ruler of Dubai’s Court and Chairman of Dubai Islamic Bank, said, “The UAE’s economy continue to expand at a fast rate supported by high energy prices, increasing business trade and activities and the return of tourism which has boosted domestic retail spending. The banking sector remains well-insulated from the global contagion and continues to be on a solid footing with steady growth in their balance sheets and rising profitability levels with DIB closing the first quarter of the year with very strong and remarkable set of results.”
“The nation’s transition into a green economy is well underway and we at DIB remain fully committed towards sustainable development and have integrated a full-fledged sustainability strategy in our medium- and long- term goals. In addition with this commitment, we also successfully issued our 2nd sustainable sukuk (US$1 billion) during the quarter which was very well accepted and oversubscribed in the financial markets.” For his part, Dr Adnan Chilwan, Group Chief Executive Officer, said, “The UAE’s operating environment has been steadfast amidst the global economy’s complex challenges.
The return of trade & tourism, increasing retail spending as well as rising profitability in banking & finance reflect the growing confidence that consumers have on the domestic economy. Accordingly, government related entities (GREs) continue to maintain strong balance sheets, with cash surplus, on the back of the UAE’s stable economy; allowing them to reinvest in the nation’s expansionary agendas.
“In light of the global events, DIB’s asset quality has been remained robust with NPF ratio stable at 6.5 percent. Additionally, our overall coverage ratio and cash coverage ratio have been increasing depicting the bank’s prudent approach to risk management,” Dr Chilwan added.