Dubai Islamic Bank (DIB) said Wednesday it registered a net profit of $919.7 million (AED 3.4 billion) for the first half of 2024, marking a rise of 8.6% year-on-year, thanks to higher total income and lower impairment charges.
DIB's total income reached $3.1 billion (AED 11.3 billion) for the January-June period, up 21.3% year-on-year, according to its earnings report posted on the Dubai Financial Market (DFM). The bank's net operating revenues rose 8.6% year-on-year during the first half to reach $1.6 billion (AED 6.1 billion), the bank statement added.
The period saw a 14.6% year-on-year rise in DIB's operating expenses to $458.8 million (AED 1.7 billion) for the period due to higher wages. DIB's net financing and sukuk investments reached $75.7 billion (AED 277.9 billion) during the six months ending June 30, 2024, up from $72.9 billion (AED 268 billion) by the end of December 2023. However, equities and property investments registered a drop of 7% year-to-date to $2.5 billion (AED 9.3 billion).
DIB saw strong gross new underwriting of 20% year-on-year in the consumer portfolio during the first half of 2024 to $3.3 billion (AED 12 billion), which translated into a net consumer portfolio of $1.1 billion (AED 4 billion), a surge of 96% year-on-year. However, the Islamic bank said it witnessed a slight decline in gross new underwriting on the corporate front due to the timing of deals. Net corporate financing account was significantly impacted due to early settlements to the tune of $3.5 billion (AED 13 billion). The bank's impairment charges stood at $177.5 million (AED 652 million), marking a 32% year-on-year drop.
DIB's customer deposits stood at $63.7 billion (AED 234 billion) during the first half of 2024, up by 5.4% year-on-year. Dubai Islamic Bank, which ranks 14th on Forbes Middle East's list of 30 Most Valuable Banks 2024, provides Shariah-compliant banking services to over five million customers across seven countries, such as the UAE, Pakistan, Sudan, Indonesia, Bosnia, Kenya, and Türkiye. Financial performance
DIB's consumer banking portfolio reached $16.3 billion (AED 60 billion), up 7% year-to-date. The portfolio’s total new underwriting of $3.3 billion (AED 12.3 billion) during the year increased from $2.7 billion (AED 10 billion), up 20% year-on-year.
All consumer segments, especially credit cards and auto finance, were up by 22% and 14%, respectively, on a year-to-date basis.
Meanwhile, the corporate banking portfolio now stands at $37.8 billion (AED 139 billion). Revenues increased by almost 9% year-on-year to $408.4 million (AED 1.5 billion.) The yield on the corporate financing portfolio expanded by 47 basis points year-on-year to 6.7% compared to 6.2%. On the funding side, corporate deposits increased by 7% on a year-to-date basis.
DIB's sukuk investment portfolio now stands at $21.5 billion (AED 79 billion), up a solid 15% year-to-date. Net new sukuk investments during the first half of 2024 amounted to $2.9 billion (AED 10.5 billion), an increase of almost 2% year-on-year. The portfolio carries an attractive yield of 4.8%. up 17 basis points year-on-year.
"The bank’s leadership in the Islamic Capital Markets space is clearly visible, not just through facilitation of transactions globally, but also in its own fundraising particularly in the ESG space, having raised over $2.7 billion (AED10 billion) in the last couple of years," said DIB Chairman Mohammed Ibrahim Al Shaibani.
