Dubai Islamic Bank posts 16% spike in 2024 net profit

Dubai Islamic Bank (DIB), the UAE’s largest Islamic bank, saw its pre-tax profit surge 27% year-on-year to reach Dh9 billion in 2024, while net profit climbed 16% to Dh8.17 billion.

Meanwhile, total income for the year rose 16%, reaching Dh23.34 billion, reflecting solid growth across all segments, while net operating revenues increased by 10% to Dh12.84 billion, driven by growth in financing and sukuk investments, which rose 10% to Dh295 billion.

Customer deposits also saw strong growth, increasing nearly 12% to AED 249 billion, with CASA (current and savings accounts) deposits contributing over 38%, up 130 basis points from the end of 2023.

The bank's impairment charges fell significantly by 71%, dropping to Dh407 million from Dh1.4 billion in 2023, reflecting a strong reduction in non-performing finance (NPF), which improved to 4% from 5.4% in the previous year.

DIB also saw improvements in operational efficiency, with a reduction in its cost-to-income ratio by 40 basis points to 26.7%, driven by ongoing automation and digitalization efforts.

Capitalization remains strong with a Common Equity Tier 1 (CET1) ratio of 13.2%, up 40 basis points year-on-year, and a Capital Adequacy Ratio (CAR) of 18.3%, up 100 basis points.

The bank’s liquidity remains robust, with a Liquidity Coverage Ratio (LCR) of 159%. DIB’s solid results underscore its ability to drive growth while maintaining strong profitability and capital strength, positioning the bank well for the future, the lender noted in a statement.