Dubai Islamic Bank Reports Robust Growth in 1H 2024 Financial Results
Dubai Islamic Bank, the largest Islamic bank in the UAE, has announced strong financial results for the first half of 2024, showcasing impressive growth across various metrics.
Summary
Dubai Islamic Bank's first half of 2024 financial results demonstrate significant growth in income, profit, and deposits, marking a robust performance for the largest Islamic bank in the UAE.
Dubai Islamic Bank (DFM: DIB), the largest Islamic bank in the UAE, has reported strong financial results for the first half of 2024, ending June 30. The bank's balance sheet expanded by 2.7% year-to-date (YTD) to AED 323 billion, reflecting steady growth. Total income surged by an impressive 21% year-over-year (YoY) to AED 11.3 billion, while pre-tax profit grew by 18% YoY to AED 3.72 billion.
One of the standout metrics for the period was the growth in customer deposits, which increased by 5.4% YTD to AED 234 billion. The Current Account and Savings Account (CASA) deposits also saw a notable rise, now contributing 42% to the total deposits, up from 37% at the beginning of the year.
Net financing and sukuk investments reached AED 278 billion, up 3.8% YTD, with gross new underwriting and sukuk investments recording AED 43.4 billion in the first half of 2024. This solid performance is further underscored by a 32% decline in impairment charges, which came in at AED 652 million compared to AED 959 million in H1 2023.
The bank's non-performing financing (NPF) ratio improved to 4.99%, down 41 basis points (bps) YTD, indicating better asset quality. Cash coverage rose to 95%, up 500 bps YTD, showcasing the bank's strong liquidity position. The cost-to-income ratio increased slightly by 140 bps YoY to 27.8%, as the bank continues to invest in key areas and functions in line with its growth strategy.
Other key performance indicators remained stable, with Return on Assets (ROA) and Return on Tangible Equity (ROTE) at 2.2% and 18% respectively. Pre-tax ROA and ROTE were stronger at 2.4% and 20.2% respectively. The bank's Common Equity Tier 1 (CET1) ratio stood at 13.7%, up 90 bps YTD, and the Capital Adequacy Ratio (CAR) was at 18.1%, up 80 bps YTD, indicating a well-capitalized entity poised to leverage growth opportunities.
Overall, Dubai Islamic Bank's first half of 2024 financial results reflect a robust performance with significant growth in income, profit, and deposits. The bank's strong liquidity position, improved asset quality, and strategic investments in key areas suggest a stable outlook. Investors might consider holding onto their shares as the bank continues to demonstrate resilience and potential for future growth.
Source
Summary
Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE, announced its financial results for the first half of 2024. Key highlights include: - The balance sheet expanded to AED 323 billion, up 2.7% year-to-date (YTD). - Total income increased by 21% year-over-year (YoY) to AED 11.3 billion. - Pre-tax profit grew by 18% YoY to AED 3.72 billion. - Group net profit rose 8.6% YoY to AED 3.378 billion. - Net financing and sukuk investments reached AED 278 billion, up 3.8% YTD. - Customer deposits increased by 5.4% YTD to AED 234 billion, with CASA deposits now at 42%. - Impairment charges decreased by 32% YoY to AED 652 million. - Non-performing financing improved to 4.99%, down 41 basis points YTD. - The cost-to-income ratio increased by 140 basis points YoY to 27.8%. - Liquidity coverage ratio remains robust at 145.9%. - Return on assets (ROA) and return on tangible equity (ROTE) remained stable at 2.2% and 18%, respectively. - Common equity tier 1 (CET1) ratio stood at 13.7% and capital adequacy ratio (CAR) at 18.1%, indicating a well-capitalized entity. These results demonstrate DIB's strong financial performance and growth in various key metrics.
