Dubai Islamic Bank, the largest Islamic bank in the UAE, has announced that its group net profit for FY 2023 came in at AED7.01 billion  ($1.9 billion), up 26% y-o-y compared to AED5.5 billion ($1.49 billion), driven by rising non-funded income and lower impairment charges.

 

Announcing its results for the period ending December 31, 2023, Dubai Islamic Bank said the total income soared to AED20.1 billion from AED14.1 billion, thus registering a solid expansion of 43% y-o-y, while its net operating revenues showed a robust increase of 11% y-o-y to reach AED 11.6 billion. 

 

The net operating profit came at AED8.5 billion, a 10% y-o-y increase compared to AED7.7 billion in FY 2022. The balance sheet expanded strongly by 9% y-o-y to AED314 billion, it stated.  

 

According to DIB, its net financing and sukuk investments reached AED268 billion, up 12% y-o-y. 

 

Gross new underwriting and sukuk investments recorded AED88 billion vs AED63 billion in FY 2022. Over the year, the frequency of early settlement payments has retracted tremendously by 31% y-o-y leading to net growth in new financing and sukuk disbursements to AED29 billion, it stated.

 

On the solid performance, Chairman Mohammed Ibrahim Al Shaibani said: "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% y-o-y is a result of our consistent strategic efforts to grow this dynamic institution and maintain its leadership in the global Islamic finance space," he stated.

 

"Supporting the UAE’s Year of Sustainability, we, together with the UAE Banks Federation commit to delivering AED1 trillion in sustainable finance over the coming years. DIB has already been at the forefront of this commitment with $1.75 billion 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," he added.  

 

Group CEO Dr Adnan Chilwan pointed out that DIB’s profitability hit record high during FY 2023 year delivering net profit of AED7.01 billion, up 26% y-o-y supported by significant asset growth, stable costs, and strong margins, solid recoveries thus reflecting healthy economic conditions.

 

"The expansionary agenda continues as the balance sheet grew further by 9% y-o-y to AED314 billion. Financing book rose by 7% y-o-y to AED199 billion across corporate and consumer businesses reinforced by a surge in corporate cross border and private sector financing. Including sukuk, the bank’s financing and sukuk assets have grown 12%, surpassing full year guidance," he added.-TradeArabia News Service