Dubai Islamic Bank (DFM: DIB), the largest Islamic bank in the UAE, has reported impressive financial results for the first half of 2023, showcasing a remarkable 15 percent year-on-year growth in net profit, reaching AED 3.111 billion. The bank attributes its success to a combination of rising core revenues, effective cost management, and controlled impairments, which have contributed to its robust performance despite global economic challenges.
The figures released by DIB highlight its strong position in the market, with net financing and sukuk investments standing at AED 251 billion, representing a notable 5.3 percent year-to-date increase. Additionally, the bank’s gross new underwriting and sukuk investments reached an impressive AED 45 billion in H1’23, compared to AED 33 billion in the same period last year, indicating a significant uptick in business activity.
The total income for the bank during the first half of 2023 surged by 49 percent year-on-year, reaching AED 9.309 billion. This growth in income is a testament to DIB’s successful strategies and its ability to capitalize on emerging opportunities in the UAE’s dynamic economic landscape. Net operating revenues also demonstrated solid growth, increasing by 11 percent year-on-year to AED 5,580 million, and net operating profit settled at AED 4,109 million, showcasing a 12 percent increase compared to H1’22.
Strong Economic Recovery Driving Growth
Commenting on the bank’s exceptional performance, Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank, attributed the success to the UAE’s resilient economy, which has continued to expand amidst moderating global growth. Key sectors such as tourism, real estate, and financial markets have shown signs of recovery, aided by the government’s business and economic reforms.
The first half of 2023 witnessed Dubai welcoming over 8.5 million visitors, while the Dubai Financial Market experienced a remarkable 14 percent year-to-date rise, reflecting the Emirate’s economic resilience. This growth, combined with strong consumer and corporate business portfolios, has contributed to the banking sector’s overall resilience and rising profitability.
The UAE’s non-oil sector is also estimated to grow at a rate above 4 percent in the current year, further boosting economic prospects and providing tailwinds for a flourishing non-oil economy. DIB’s strategic alignment with the UAE’s expansionary agenda and its support for key sectors, such as tourism, construction, real estate, and clean energy, have further solidified its position as a leading bank in the region.
Focused on Sustainable Growth
Dr. Adnan Chilwan, Group Chief Executive Officer, DIB, expressed optimism about Dubai’s recovery path and its pivotal role in supporting the national growth agendas. The bank’s first-half results have showcased its strong financial position and successful execution of medium-term strategic objectives.
With net profit reaching AED 3.1 billion, up 15 percent year-on-year, DIB has demonstrated higher revenues, controlled costs, and effective impairment management. Furthermore, the bank’s balance sheet has reached a significant milestone, standing at AED 300 billion, indicating solid growth.
DIB’s financing book has also grown by 2 percent year-to-date, reaching AED 190 billion across corporate and consumer segments. Additionally, the bank has witnessed a surge in digital sales and transactions, particularly in the consumer business, further underlining its commitment to innovation and customer-centric services.
Outlook and Growth Prospects
The bank’s achievements in the first half of 2023 have laid a strong foundation for continued growth and prosperity. DIB remains focused on sustainable growth, leveraging opportunities within the UAE’s thriving non-oil economy and ensuring strategic alignment with the nation’s development goals.
As the bank continues to navigate economic uncertainties and market challenges, its commitment to excellence, innovation, and customer satisfaction positions Dubai Islamic Bank as a key player in the UAE’s financial sector, driving positive outcomes for the bank, its stakeholders, and the broader economy.
