Dubai, UAE – Dubai Islamic Bank (DIB), the UAE’s largest Islamic lender, has reported a 16% surge in net profit to AED 8.17 billion in 2024, driven by robust revenue growth, strong deposit inflows, and a sharp decline in impairment charges.
The bank’s pre-tax profit soared by 27% year-on-year to AED 9 billion, underscoring its ability to expand operations while maintaining financial resilience.
Strong Revenue and Investment Growth
DIB’s total income climbed 16% to AED 23.34 billion, reflecting growth across all business segments. Net operating revenue saw a 10% increase to AED 12.84 billion, supported by higher financing and sukuk investments, which rose 10% to AED 295 billion.
Deposit Base Strengthens, CASA Share Rises
The bank reported a 12% increase in customer deposits, reaching AED 249 billion, with Current and Savings Accounts (CASA) contributing over 38%—a rise of 130 basis points from the previous year. The increase in CASA deposits highlights DIB’s continued focus on low-cost funding sources.
Impairments Drop 71% as Asset Quality Improves
DIB significantly reduced its impairment charges by 71%, bringing them down to AED 407 million, compared to AED 1.4 billion in 2023. This improvement was accompanied by a drop in its non-performing finance (NPF) ratio from 5.4% to 4%, signaling stronger asset quality and effective risk management.
Operational Efficiency and Digital Transformation
The bank also enhanced its operational efficiency, reducing its cost-to-income ratio by 40 basis points to 26.7%, driven by ongoing digital transformation and automation initiatives.
Capital and Liquidity Remain Strong
DIB maintained a healthy capital position, with its Common Equity Tier 1 (CET1) ratio rising to 13.2%, up 40 basis points year-on-year. The Capital Adequacy Ratio (CAR) increased to 18.3%, further reinforcing the bank’s financial stability.
The lender’s Liquidity Coverage Ratio (LCR) stood at 159%, reflecting its strong liquidity position and ability to navigate market fluctuations.
Future Outlook
Dubai Islamic Bank’s stellar performance in 2024 highlights its resilience, operational efficiency, and commitment to sustainable growth in an evolving economic landscape. With strong profitability, improved asset quality, and strategic digitalization efforts, DIB remains well-positioned to expand its market presence while adhering to Shariah-compliant banking principles.
ENDS.
