Dubai Islamic Bank (DIB) has registered solid growth for the first six months with the group's net profit surging 8.6% YoY to hit AED3.38 billion ($920 million), while its total income rose to AED11.2 billion ($3.04 billion) from last year's figure of AED9.3 billion ($2.5 billion), thus registering a 21.3% growth.  

 

Announcing its results for the six-month period ending June 30, 2024, DIB said its group pre-tax profit registered AED3,721 million up 18% YoY, while Group Net Profit came in at AED3,378 million, up 8.6% YoY. 

 

The total income rose to AED11,292 million in H1 2024 demonstrating a solid growth of 21% YoY compared to AED9,309 million. Non-funded income advanced by 37% YoY over the reporting period supported by income from investment properties and associate income.

 

According DIB, the net operating revenue grew by 8.6% YoY to hit AED6,058 million compared to AED5,580 million last year.

 

Pre-impairment profit increased by 6.4% YoY reaching AED 4,373 million compared to AED 4,109 million.  Impairment charges stood at AED 652 million down by a significant 32% YoY.  

 

On the Q2 results, the top Islamic lender in Dubai said its pre-tax profit hit AED1,870 million up 14% YoY and up over 1% QoQ, demonstrating resilient performance. 

 

The key highlights of the bank's six-month performance include:

 

•Net financing and sukuk investments reached AED 278 billion, up 3.8% YTD. Gross new underwriting and sukuk investments recorded AED 43.4 billion in H1 2024. 

•Total income reached to AED 11,292 million compared to AED 9,309 million, a solid expansion of 21.3% YoY.

•Net Operating Revenues showed a robust increase of 8.6% YoY to reach AED 6,058 million. 

•Net Operating Profit stood at AED 4,373 million, a 6.4% YoY increase compared to AED 4,109 million in H1 2023.

•Balance sheet displayed steady growth rising by 2.7% YTD to reach AED 323 billion.  

•Customer deposits rose to AED 234 billion, up 5.4% YTD with CASA deposit contribution now at 42%, up 500 bps from 37% at the beginning of the year. 

•Impairment charges came at AED 652 million, declining by 32% YoY against AED 959 million in H1 2023. 

•NPF improved to 4.99% compared to 5.40% in YE 2023, lower by 41 bps YTD. Cash Coverage rose to 95%, up 500 bps YTD.

•Cost to income ratio up by 140 bps YoY to 27.8%, as the bank continue to strengthen its key areas and functions in line with its growth strategy.

 

On the solid performance, DIB Chairman Mohammed Ibrahim Al Shaibani said: "International growth remains steady as central banks around the world continue to pause rate hikes leading to more moderate global inflation levels and providing macro-economic stability to the international economy. The UAE remains resilient with key sectors showing positive momentum such as tourism, hospitality, transportation and the financial sector which has demonstrated improving asset quality and rising profitability."

 

"The UAE’s banking system remains robust with ample capitalization that has facilitated balance sheet expansion despite tightening of global financial conditions. This is also reflected in DIB’s H1 2024 results with the bank’s balance sheet growing by 2.7% to reach AED 323 billion," he added.

 

Group CEO Dr. Adnan Chilwan said: "A remarkable first half performance with total income crossing AED 11.3 billion, a strong rise of 21% YoY. This has led to the bank achieving an 18% growth in Group profit (pre-tax) which reached AED 3.7 billion for H1 2024."

 

Dubai and the UAE continue to grow their status as being amongst the most competitive and highly advanced economies in the world, he added.-TradeArabia News Service