Dubai Islamic Bank Reports 27% Rise in Pre-Tax Profit for FY 2024 Amid Strong Balance Sheet Growth
Dubai Islamic Bank, the largest Islamic bank in the UAE, has released its financial results for the year ending December 31, 2024, showcasing significant growth in income and profitability.
Summary
Dubai Islamic Bank (DIB) reported a 27% increase in pre-tax profit for FY 2024, driven by a 16% rise in total income and a robust balance sheet expansion. The bank's strategic investments and improved asset quality have positioned it well for future growth.
Dubai Islamic Bank's Financial Performance in FY 2024
Dubai Islamic Bank (DIB) has reported its financial results for the fiscal year ending December 31, 2024. The bank has shown remarkable growth across various financial metrics, further solidifying its position as the largest Islamic bank in the UAE.
Key Financial Performance Indicators
| KPI | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Total Income (AED million) | 23,341 | 20,142 | 16% |
| Pre-Tax Profit (AED million) | 9,005 | 7,010 | 27% |
| Net Profit (AED million) | 8,165 | 7,010 | 16% |
| Net Operating Revenues (AED million) | 12,837 | 11,665 | 10% |
| Customer Deposits (AED billion) | 249 | 222 | 12% |
| NPF Ratio | 4.0% | 5.4% | -140 bps |
| Cost to Income Ratio | 26.7% | 27.1% | -40 bps |
| CET1 | 13.2% | 13.1% | +40 bps |
| CAR | 18.3% | 17.5% | +100 bps |
Analysis and Comparison with Previous Year
DIB's total income increased by 16% YoY, reaching AED 23,341 million, driven by strong net financing and sukuk investments, which grew by 10% YoY. The bank's pre-tax profit surged by 27% YoY, indicating efficient cost management and increased operational efficiency. The net profit also saw a significant rise of 16% YoY, reflecting the bank's ability to generate higher returns for its shareholders.
The bank's asset quality improved significantly, with the NPF ratio declining to 4.0% from 5.4% at the end of 2023. This improvement was supported by a substantial decline in impairment charges by 71% YoY.
Conclusion
Dubai Islamic Bank's financial performance in FY 2024 demonstrates its strong market position and ability to capitalize on growth opportunities. The bank's improved asset quality, strategic investments, and robust balance sheet expansion position it well for continued success. For investors, DIB's strong financial metrics and strategic direction suggest a positive outlook for future growth.
Source
Summary
The consolidated financial statements of Dubai Islamic Bank P.J.S.C. for the year ending December 31, 2024, have been audited. These statements require approval from the Central Bank of UAE and adoption by shareholders at the Annual General Meeting.
