Dubai Islamic Bank (DIB) said Wednesday its group net profit for the first nine months of 2023 surged 17.6% to $1.3 billion (AED 4.8 billion) compared to the same period last year, supported by higher revenues, cost control measures, and lower impairments.
The total income of the Islamic lender soared 47.4% year-on-year to $3.96 billion (AED 14.5 billion) for the January-September period, mainly driven by strong income from financing assets and non-funded income, DIB said in a statement Wednesday. For the third quarter of this year, net profit rose 22% to $466.4 million (AED 1.7 billion) compared to the year-ago period. DIB’s customer deposits were up 11.2% year-on-year to $60.2 billion (AED 221 billion) for the first nine months of this year, supported by both consumer and corporate accounts.
The Sharia-complaint bank also said its impairment charges for the nine months stood at $383.6 million (AED 1.4 billion), down 3% from the year-ago period’s $394.8 million (AED 1.4 billion).
The cost-to-income ratio stood 20 basis points lower at 26.5% for the nine-month period. However, operating expenses rose 11% year-on-year to $615.9 million (AED 2.3 billion) for the January-September period. The bank’s non-funded income also surged by 15% year-on-year for the nine-month period, supported by fees and commissions and income from property investments.
The bank, which ranks 13th on Forbes Middle East’s 50 Most Valuable Banks 2023 list and 22nd on the Top 100 Listed Companies 2023 list, said its balance sheet crossed a new milestone to reach $85.2 billion (AED 313 billion), up 9% year-to-date. Net financing, sukuk investments DIB said its net financing and sukuk investments stood at $72.3 billion (AED 265 billion), up 11.3% since the beginning of the year from $64.8 billion (AED 238 billion) in the fiscal year of 2022.
Year-to-date, its net financing assets were up by 7% and sukuk investments portfolio, soared by nearly 27% to $17.97 billion (AED 66 billion).
“The domestic banking sector remains solid with expanding balance sheets and improving asset quality and profitability,” DIB Chairman Mohammed Ibrahim Al Shaibani said in the statement.
“DIB’s 9M 2023 performance has been remarkable, generating more than AED 14.5 billion ($3.96 billion) in total income, a stellar growth of 47% YoY.”
$10.7 billion (AED 39.2 billion). That's the market cap of DIB as its shares edged up 0.4% to $1.48 (AED 5.42) as of 10:30 am GST Wednesday.
