Dubai Islamic Bank (DIB), the UAE's largest Islamic bank by assets, posted Wednesday a 26% surge in its full-year net profit for 2022, reaching $1.5 billion (AED 5.6 billion). This strong growth was driven by rising core revenues, cost management, and sustained lower impairments.
DIB said its total income climbed to $3.8 billion (AED 14.1 billion) last year, a double-digit growth of 20% year-on-year, primarily driven by strong income from financing assets. The bank's net operating profit also went up 12% year-on-year to $2.1 billion (AED 7.7 billion), while net operating revenues went up 11%, reaching $2.9 billion (AED 10.5 billion), the bank's earnings report showed.
Adnan Chilwan, the bank's CEO, said this was "the highest ever net income in our bank’s history."
DIB’s impairment charges continued to decline in 2022, registering $572.5 million (AED 2.1 billion) compared to $666.5 million (AED 2.4 billion) in the previous year, which, according to the bank, demonstrates the resilience of the financing book.
The bank said its capitalization levels remained strong, with common equity tier 1 (CET1) at 12.9% (+150bps year-on-year) and capital adequacy ratio (CAR) at 17.6% (+150bps), adding that both were well above the minimum regulatory requirement. Its total equity stood at $12 billion (AED 44 billion).
Chilwan said that "maintaining firm control on expenses" led to the cost-to-income ratio at 26.1%. He added that liquidity, which hit a liquidity coverage ratio (LCR) of 150%, remained solid mainly through maintaining strong relationships with the government, public and large corporates.
The bank's consumer banking portfolio was up 5% to $14.4 billion (AED 53 billion) in 2022, compared to the previous year. The portfolio’s total new underwriting rose 29% to $4.9 billion (AED 18 billion) in 2022, primarily driven by personal and home finance accounts.
