DIB posts half-year revenue of Dh12.4 billion

DIB, the UAE's largest Islamic bank by assets, posted a strong financial performance for the first half of 2026, with gross revenue rising 10 per cent year-on-year to Dh12.4 billion, supported by growth across both funded and non-funded income streams. The bank reported pre-tax profit of Dh4.3 billion, while net financing assets grew 7 per cent year-to-date to Dh281 billion after extending Dh43 billion in new financing during the period.

Asset quality continued to improve, with the non-performing financing ratio declining to 2.4 per cent and the cost of risk remaining low at 28 basis points. Customer deposits climbed to Dh327 billion, with the bank maintaining strong capital and liquidity buffers, reflected in a CET1 ratio of 13 per cent and a liquidity coverage ratio of 140 per cent.

"The first half of 2026 unfolded in a challenging operating environment, with geopolitical developments, shifting rate expectations and market confidence continuing to shape decision-making across global markets," said Mohammed Ibrahim Al-Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of DIB.

"Against this backdrop, the UAE remained resilient, supported by economic diversification, disciplined policy execution and the depth of its financial system. Dubai's latest economic data provides a clear example of this resilience, with GDP reaching Dh232 billion in the first quarter of 2026, up 2.4 per cent year-on-year.

"The board remains focused on ensuring that DIB grows with discipline and not merely for scale. In an evolving cycle, preserving asset quality, liquidity and capital strength is as important as expanding the franchise. The bank's results show that growth has been delivered on a healthy footing, supported by prudent risk management and a business model anchored in Sharia-compliant banking.

"As the UAE continues to advance its economic ambitions and strengthen its global standing, DIB remains committed to supporting this progress. Our priorities remain clear: to preserve the strength of the Bank, support the real economy, deepen customer trust and continue advancing Islamic finance as a competitive and responsible model for modern banking.

Dr Adnan Chilwan, Group CEO of DIB, said the first-half results reflected the breadth of earnings across the franchise and continued demand for its Shariah-compliant products and services.

"Profitability remained robust. Operating profit rose 6 per cent year-on-year to Dh4.8 billion, supported by revenue growth, disciplined cost management and continued operating efficiency," he explained. Pre-tax profit reached Dh4.3 billion, while post-tax profit remained stable at Dh3.7 billion. Pre-tax return on tangible equity remained close to 20 per cent, reflecting the quality of our earnings and our focus on returns, not simply balance sheet growth."

Dr Chilwan said that continued improvement in asset quality was an important outcome in the current environment.

"The non-performing financing ratio improved to 2.4 per cent, cost of risk remained low at 28 bps and cash coverage stood at 122%," he added. These indicators reflect disciplined underwriting, active portfolio management and the quality of the bank's financing book as we continue to grow.

"The successful issuance of our $1 billion Additional Tier 1 Perpetual Non-Call 6-Year Sukuk further demonstrated investor confidence in DIB's credit fundamentals while strengthening the bank's capital base.

"Our priorities for the second half are clear. We will continue to grow with discipline, diversify revenues, maintain asset quality and invest in capabilities that improve efficiency and customer service. With a resilient balance sheet and focused strategy, DIB is well placed to continue supporting customers, businesses and the wider economy through Islamic banking solutions that remain relevant, responsible and commercially competitive."

Consumer banking maintained strong growth momentum, with the portfolio expanding 12 per cent year-to-date to Dh86 billion, supported by broad-based demand across financing products. Personal finance volumes increased by 30 per cent year-on-year, taking the portfolio beyond Dh30 billion and reinforcing DIB's leading position in the UAE personal finance market.

Local and cross-border corporate financing assets reached Dh186 billion, increasing by more than 5 per cent year-to-date and reflecting sustained demand across corporate and institutional segments.

DIB further reinforced its leadership in Islamic capital markets, participating in over $20 billion of sukuk issuances and nearly $6 billion of syndicated financings across sovereigns, GREs, corporates and financial institutions.

Digital acquisition reached record levels, with 83 per cent of new CASA customers onboarded through digital channels, significantly improving turnaround times while enhancing KYC processing and the customer onboarding experience.

DIB originated Dh3.1 billion of sustainable finance and Dh2.1 billion of sustainability-linked finance year-to-date. It also launched Green Concierge, a market-leading sustainability platform designed to support clients through advisory partnerships, financing readiness and structuring solutions as they advance their transition agendas.

- In association with DIB