Dubai Islamic Bank posted a 26 per cent rise in net profit for 2023, which the largest Islamic bank in the UAE attributed to higher non-funded income and lower impairment charges. The profit boost also prompted the lender to raise its dividend to 45 per cent of value of stock held by a shareholder, from 30 per cent earlier.
Group net profit came in at Dh7.01 billion for the year ending December 31, 2023, compared to Dh5.55 billion. This was helped by lower impairment charges of Dh1.396 billion against Dh2.103 billion in FY 2022, down by 34 per cent. Also, customer deposits increased to Dh222 billion, up 12 per cent from last year.
"2023 has been an exceptional year for DIB as the bank delivered its highest profitability in history," said Mohammed Ibrahim Al Shaibani, Director-General of The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank.
"DIB’s profitability hit record high during FY 2023, supported by significant asset growth, stable costs, and strong margins, solid recoveries thus reflecting healthy economic conditions."
Additionally, the lender reported healthy levels of liquidity with LCR at 188.7 per cent, with NPF falling largely below the 6 per cent mark, now at 5.4 per cent compared to 6.5 per cent at 2022-end.