Dubai Islamic Bank, the UAE’s biggest Sharia-compliant lender by assets, reported a 24.1 per cent increase in 2023 fiscal net profit, driven by rising non-funded income and lower impairment charges.
Net profit attributable to owners of the bank for the 12 months to the end of December stood at Dh6.79 billion ($1.9 billion), the lender said on Tuesday in a filing to the Dubai Financial Market, where its shares are traded.
Income from Islamic financing and investing transactions for the reporting period surged nearly 46.7 per cent to Dh17.2 billion.
The lender’s yearly income from properties held for development and sales rose to more than Dh237.2 million, up from Dh137.8 million in 2022.
Commissions, fees and foreign exchange income also jumped more than 12 per cent on an annual basis to Dh1.79 billion in the January-December period.
“The GCC financial markets had a strong year with Dubai showcasing a robust double-digit gain of more than 20 per cent year-on-year supported by a strong pipeline of IPOs [initial public offerings] and rising volume trades,” DIB chairman Ibrahim Al Shaibani said.
“The banking sector also showed strong resilience with healthy and growing balance sheets and higher earnings.”
The lender did not disclose the financials for the fourth quarter of 2023.
DIB’s net financing and sukuk investments reached Dh268 billion last year, up 12 per cent on a yearly basis, while its balance sheet expanded strongly by 9 per cent to Dh314 billion.
Net operating profit surged 10 per cent on an annual basis to more than Dh8.5 billion, compared to Dh7.7 billion in 2022 financial year.
DIB’s customer deposits increased to Dh222 billion, up 12 per cent with current and saving accounts comprising 37 per cent of the total deposit base, it said.
The bank’s impairment charges decreased 34 per cent to Dh1.3 billion last year.
The UAE’s Islamic finance sector is on a strong growth trajectory, the Central Bank said in its report last month.— The National
