Dubai Islamic Bank (DIB), the leading Islamic bank in the UAE, recently disclosed its group pre-tax profit for the first three quarters of 2024, which amounted to Dh6.002 billion, marking a 23 percent year-on-year increase. Concurrently, the group net profit stood at Dh5.448 billion, reflecting a 13 percent year-on-year rise. For the third quarter alone, DIB's pre-tax profit surged to Dh2.281 billion, a 32.1 percent year-on-year increase. The bank's net financing and sukuk investments reached Dh286 billion, up by 7 percent year-to-date, with net financing growth accelerating to 3.7 percent year-to-date. Gross new underwriting and sukuk investments totaled Dh68.8 billion in the first nine months of 2024.
Total income for DIB expanded to Dh16.995 billion, compared to Dh14.548 billion in the same period last year, representing a robust 16.8 percent year-on-year growth. Net operating revenues also exhibited a strong increase of 6.3 percent year-on-year, reaching Dh9,085 million. The bank's balance sheet grew by 4.7 percent year-to-date to Dh329 billion. Customer deposits rose to Dh237 billion, a 6.7 percent year-to-date increase, with current and savings accounts (Casa) deposits contributing over 38.1 percent, up from 36.6 percent at the start of the year. Impairment charges significantly decreased by 62 percent year-on-year to Dh530 million, compared to Dh1,409 million in the first nine months of 2023.
The bank's Non-Performing Financing (NPF) ratio improved to 4.27 percent, down from 5.40 percent at the end of 2023, a reduction of 113 basis points year-to-date. Cash coverage now stands at 97 percent. The cost-to-income ratio increased by 160 basis points year-on-year to 28.1 percent, as the bank continues to enhance its key areas and functions in alignment with its growth strategy.
Mohammed Ibrahim Al Shaibani, Director-General of The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank, commented: “The UAE continues to make significant strides in economic growth and development, despite global uncertainties and regional conflicts. With inflation showing signs of moderation, central banks are now lowering rates, creating more favorable financial market and economic conditions. The UAE's growth projections remain strong, driven by a rising population, growing tourism, and increased trading volumes. Consequently, DIB's performance over the first nine months has been outstanding, with total income nearing Dh17 billion, a robust 17 percent year-on-year increase. The bank continues to attract strong new origination from its expanding customer base across the country and the region.”
Dr. Adnan Chilwan, Group Chief Executive Officer, added: “The UAE banking system remains resilient despite global market and regional volatility, as evidenced by rising lending and deposit volumes. The sector's strong performance is underpinned by a positive economic outlook, increasing business activities, improving asset quality, and rising profitability. All business units achieved positive results, with both corporate and consumer portfolios adding over Dh7 billion in new net lending across various sectors. Along with solid growth in the fixed income book, the bank's financing and sukuk portfolio reached Dh286 billion, up 7 percent, surpassing year-end guidance by 180 basis points.”
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