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Dubai Islamic Bank Full Year 2023 Group Financial Results

Dubai Islamic Bank Full Year 2023 Group Financial Results

Wednesday, January 24, 2024/ Editor -  


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  •  Robust rise in total income by 43% YoY to AED 20 billion.
  •  Net profit of AED 7 billion, stellar growth of 26% YoY.
  •  Expansion continues as Balance Sheet rises to AED 314 billion, up 9% YoY.
  •  Asset quality improved to 5.4% down 110 bps YoY, beating guidance. 
  •  Shareholder returns continue to grow with RoTE at 20%, up 300 bps YoY, beating guidance.
  •  Proposed dividend of 45%, subject to shareholder approval in AGM.

Dubai, January 23, 2024
Dubai Islamic Bank (DFM: DIB), the largest Islamic bank in the UAE, today announced its results for the period ending December 31, 2023.
FY 2023 Highlights:
• Group Net Profit came in at AED 7,010 million, up 26% YoY compared to AED 5,552 million, driven by rising non-funded income and lower impairment charges.
• Net financing and sukuk investments reached AED 268 billion, up 12% YoY. Gross new underwriting and sukuk investments recorded AED 88 billion vs AED 63 billion in FY 2022. Over the year, the frequency of early settlement payments has retracted tremendously by 31% YoY leading to net growth in new financing and sukuk disbursements to AED 29 billion.
• Total income reached to AED 20,142 million compared to AED 14,101 million, a solid expansion of 43% YoY.
• Net Operating Revenues showed a robust increase of 11% YoY to reach AED 11,665 million. 
• Net Operating Profit came at AED 8,503 million, a 10% YoY increase compared to AED 7,734 million in FY 2022.
• Balance sheet expanded strongly by 9% YoY to AED 314 billion.  
• Customer deposits increased to AED 222 billion, up 12% YoY with CASA comprising 37% of DIB’s deposit base. Traction towards investment deposits has continued increasing their contribution to total deposits to 63% from 56% in YE 2022. 
• Impairment charges registered AED 1,396 million against AED 2,103 million in FY 2022, down by 34%. Separately, 4Q 2023 registered impairment reversal of AED 13 million down 102% YoY and 103% QoQ.
• NPF falling largely below the 6% mark, now at 5.4% compared to 6.5% at YE2022, lower by 110 bps YoY and 60 bps QoQ. Cash Coverage rose to 90%, up 1200 bps YoY.
• Cost to income ratio at 27.1%, staying below guidance. 
• Liquidity remains healthy with LCR at 188.7%.
• Continued improvement on ROA now at 2.3% (+30 bps YoY) and ROTE at 20% (+300 bps YoY).
• Capitalization levels remain robust with CET1 at 12.8% (-10 bps YoY) and CAR at 17.3% (-30 bps YoY), both well above the minimum regulatory requirement. Total equity now stands at AED 47 billion.
Management’s comments for the period ended 31st December 2023:
His Excellency Mohammed Ibrahim Al Shaibani
Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank
Dr. Adnan Chilwan
Group Chief Executive Officer • The UAE economy continues to expand amidst the tightening of global financial conditions owing to elevated inflation levels and moderate global growth. The GCC financial markets had a strong year with Dubai showcasing a robust double-digit gain of more than 20% YoY supported by a strong pipeline of IPOs and rising volume trades. The banking sector also showed strong resilience with healthy and growing balance sheets and higher earnings.
• 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% YoY is a result of our consistent strategic efforts to grow this dynamic institution and maintain its leadership in the global Islamic finance space.
• Supporting the UAE’s Year of Sustainability, we, together with the UAE Banks Federation commit to delivering AED 1 trillion in sustainable finance over the coming years. DIB has already been at the forefront of this commitment with USD 1.75 bn 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. 
• Over the year 2023, Dubai’s economy has propelled at exceptional rate due to the structural and cyclical factors as well as deleveraging. Dubai’s PMI data has ended the year at an exceptional level ticking at 57.7 in December, marking healthy acceleration.  Banks’ credit have grown reflecting ample opportunity and liquidity aligned with the buoyant economic activities across all industries.  
• DIB’s profitability hit record high during FY 2023 year delivering net profit of AED 7,010 million, up 26% YoY 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% YoY to AED 314 billion. Financing book rose by 7% YoY to AED 199 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.
• As leaders in the global green transformation, DIB proudly served as an Associate Pathway Partner at COP28 in 2023. Our sustainability strategy, with its core pillars 'Lead by Example' and 'Financing a Sustainable Future,' is guiding us in shaping the sustainable financial landscape. A testament to our commitment is the successful issuance of a USD 1 billion Sustainable Sukuk, a landmark in Islamic and sustainable finance. Our innovative tree-planting initiative for every new account exemplifies our approach to involve our customers in our sustainability journey. We have continued to demonstrate our commitment to the UAE’s vision of sustainability as demonstrated by our collaboration with other UAE banks to collectively pledge to mobilize over AED 1 trillion in sustainable finance by the year 2030. At DIB, we are not just pursuing growth; we are dedicated to purpose-driven expansion, setting a sustainable path for ourselves, the UAE, and the Islamic banking sector worldwide.

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