DIB posts first-quarter revenue of Dh3.5 billion and pre-tax profit of Dh2.1 billion

DIB, the largest Islamic bank in the UAE by assets, recorded operating revenues of Dh3.5 billion for the first quarter of 2026, a 13 per cent year-on-year (YoY) growth, while total assets reached Dh420 billion.

The growth in operating revenues was driven by broad-based momentum across key revenue streams, including a 5 per cent YoY increase in funded income and a 30 per cent YoY rise in non-funded income.

Operating profit increased by 12 per cent YoY to Dh2.5 billion, thanks to solid revenue growth and continued cost discipline, underscoring DIB’s highly efficient operating model with a cost-to-income ratio of 28.2 per cent.

Pre-tax profit reached Dh2.1 billion, reflecting the resilience of the bank’s earnings profile despite a lower rate environment and softer recoveries during the quarter.

“The first quarter of 2026 has once again shown the strength of the UAE’s foundations and the confidence that its economy continues to command, even as regional developments shape a more watchful external environment,” said Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of DIB. “What distinguishes the UAE in times such as these is not only the resilience of its economy, but the clarity of its leadership, the strength of its institutions and the readiness of its policy framework to preserve stability, support growth and maintain confidence across the system. The measures announced by the Central Bank of the UAE during the period are a further reflection of that preparedness and of the soundness of the country’s financial sector architecture.

“Against this backdrop, DIB’s first-quarter performance reflects the benefits of scale, discipline and strategic consistency. The bank continues to operate from a position of strength, with net financing assets and sukuk investments reaching Dh364 billion and customer deposits standing at Dh322 billion by the end of the first quarter. These are not only indicators of scale; they reflect the strength of the franchise, the confidence of our customers and our ability to continue supporting economic activity with prudence and purpose.

“DIB’s role has always extended beyond financial performance. As a leading institution in the UAE and in Islamic finance globally, the bank remains committed to supporting the real economy, enabling opportunity across sectors, and contributing to the long-term ambitions of the UAE through a model built on strong governance, sound risk discipline and responsible growth. The task ahead is not simply to preserve strength, but to deploy it well, with prudence, purpose and a clear commitment to supporting the UAE’s progress while building enduring institutional value.”

Balanced income mix

Dr Adnan Chilwan, Group Chief Executive Officer of DIB, said the first-quarter results reflected healthy business momentum, improved earnings diversification and the continued strength of the bank’s core franchise. “Our revenue profile continued to broaden during the quarter,” he explained, reflecting stronger contribution from across the business and a more balanced income mix overall. “This helped drive operating profit to Dh2.5 billion, while pre-tax return on tangible equity remained strong at 21 per cent, in line with our focus on quality growth and sustained profitability.”

Asset quality also continued to improve, with the non-performing financing ratio declining to 2.5 per cent, while cash coverage strengthened to 122 per cent, he said. These metrics reflect the quality of the bank’s underwriting, the effectiveness of its risk discipline and continued focus on preserving balance sheet strength as we grow.

“That same prudence continues to shape the way we manage risk. Our provisioning approach, including the addition of management ECL overlay where appropriate, reflects a deliberate and disciplined stance towards risk, while supporting the long-term resilience of the bank.

“Our capital and liquidity positions also remained sound, with CET1 at 12.6 per cent, capital adequacy at 15.8 per cent, LCR at 121 per cent and NSFR at 106 per cent. This leaves us strongly positioned for the periods ahead, with the financial strength, commercial momentum and execution discipline to keep advancing our growth agenda without compromising the quality of the franchise.”

Dubai Islamic Bank’s consumer banking segment continued to deliver steady growth, with financing assets rising 6 per cent year-to-date to Dh83 billion. The division generated nearly Dh11 billion in gross new originations, while consumer deposits climbed to Dh106 billion. Revenues remained resilient at Dh1.1 billion, reflecting stable customer activity and demand. The bank said the segment continued to support overall balance sheet growth while maintaining a disciplined approach to expanding its customer base and preserving funding quality.

Alongside its financial performance, DIB continued to make progress across digital banking, enterprise AI and sustainability.

— In association with DIB