Dubai Islamic Bank Reports Robust 9M 2024 Results
Dubai Islamic Bank has showcased significant growth in its financial performance for the first nine months of 2024.
Summary
Dubai Islamic Bank's financial results for the first nine months of 2024 reveal strong growth in income and profit, alongside improved ratings.
Dubai Islamic Bank (DIB), the largest Islamic bank in the United Arab Emirates, has reported impressive financial results for the first nine months of 2024, marking a period of robust growth and strategic advancements. The bank's balance sheet expanded to AED 329 billion, reflecting a year-to-date growth of nearly 5%. This expansion is supported by a 17% year-on-year increase in total income, reaching AED 17 billion.
The bank's pre-tax profit surged to AED 6 billion, a notable 23% increase compared to the previous year. Furthermore, DIB's net profit rose by 13% year-on-year, amounting to AED 5,448 million. Such financial strength is further validated by the upgrade in the bank's Viability Rating to 'bbb-' from 'bb+' by Fitch Ratings, and an improvement in its MSCI ESG Rating to 'A' from 'BBB'.
Net financing and sukuk investments also saw a significant increase, reaching AED 286 billion, up 7% year-to-date. The bank's customer deposits climbed to AED 237 billion, with CASA deposits contributing over 38.1% of this total, an increase of more than 150 basis points from the start of the year. This growth in deposits demonstrates increased customer trust and confidence in the bank's services.
Impairment charges witnessed a substantial decline of 62% year-on-year, dropping to AED 530 million, a positive indicator of the bank's risk management capabilities. Additionally, the non-performing financing ratio improved to 4.27%, a reduction of 113 basis points year-to-date, showcasing the bank's effective credit risk management strategies.
Despite an increase in the cost-to-income ratio by 160 basis points year-on-year to 28.1%, the bank remains committed to strengthening its core functions and aligning them with its growth strategy. The liquidity coverage ratio remains robust at 140.1%, ensuring the bank's ability to meet its short-term obligations.
The bank's return on assets (ROA) is stable at 2.3%, while the return on tangible equity (ROTE) improved to 20%, up 200 basis points year-on-year. The bank's capital adequacy ratio (CAR) stands at 18.3%, and its common equity tier 1 (CET1) ratio at 13.9%, indicating a well-capitalized entity poised to leverage growth opportunities.
Given these positive financial indicators and the bank's strategic positioning, investors might consider a buy recommendation for Dubai Islamic Bank's stock. The bank's commitment to growth, coupled with improved ratings, positions it as a strong contender in the financial sector.
Source
Summary
Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE, reported its financial results for the first nine months of 2024, showing significant growth. The bank's balance sheet expanded by nearly 5% year-to-date (YTD) to AED 329 billion. Total income increased by 17% year-over-year (YoY) to AED 17 billion, while pre-tax profit grew by 23% YoY to AED 6 billion. The bank's viability and ESG ratings were upgraded. Net financing and sukuk investments rose to AED 286 billion, a 7% increase YTD. Customer deposits reached AED 237 billion, up 6.7% YTD, with a notable rise in CASA deposits. Impairment charges decreased significantly by 62% YoY, and the non-performing financing ratio improved to 4.27%. The cost-to-income ratio increased slightly to 28.1% as the bank strengthened key areas. The liquidity coverage ratio remained strong at 140.1%, and the bank's capital adequacy ratios indicated a well-capitalized position, with CET1 at 13.9% and CAR at 18.3%.
