Dubai Islamic Bank posts 8.6% spike in profits for first-half of 2024

Dubai: Dubai Islamic Bank (DIB), the largest Sharia-compliant lender in the UAE, posted a group net profit of Dh3.38 billion during the first half of the year, spiking 8.6 per cent from last year.

The earnings growth was aided by total income reaching Dh11.29 billion compared to Dh9.31 billion last year, which the bank deemed a "solid expansion" of 21.3 per cent year-on-year.

Additionally, net financing and sukuk investments reached Dh278 billion, up 3.8 per cent in thebyear so far. Gross new underwriting and sukuk investments recorded Dh43.4 billion in H1 2024.

Meanwhile, customer deposits rose to Dh234 billion, up 5.4 per cent YTD with current account savings accounts (CASA) deposit contribution now at 42 per cent, up 500 basis points from 37 per cent at the beginning of the year.

While impairment charges came at Dh652 million, declining by 32 per cent YoY against Dh959 million in H1 2023, non-performing financing (NPF) improved to 4.99 per centcompared to 5.40 per cent in 2023, lower by 41 basis points in the year so far.

"International growth remains steady as central banks around the world continue to pause rate hikes leading to more moderate global inflation levels and providing macro-economic stability to the international economy," noted the management in response to the results.