Dubai Islamic Bank recorded a growth in net profits by 26 percent in the year 2023 to reach more than 7 billion dirhams (about 1.9 billion dollars), compared to 5.552 billion dirhams in 2022, against the backdrop of an increase in unfunded income and a decrease in impairment losses.
The bank said, in a statement on the Dubai Financial Market, that net financing and sukuk investments recorded a growth of 12 percent on an annual basis to reach 268 billion dirhams, and the total new subscriptions and sukuk investments in 2023 reached about 88 billion dirhams, compared to 63 billion dirhams for the year. Finance 2022.
The pace of early settlement payments declined significantly throughout the year, by 31 percent year-on-year, which led to a growth in net new financing and sukuk payments to reach 29 billion dirhams, and total income reached 20.142 billion dirhams, compared to 14.1 billion dirhams for the same period last year. Recording strong growth of 43 percent year on year.
Net operating revenues achieved a strong growth of 11 percent year-on-year to reach 11.66 billion dirhams, and net operating profits reached 8.5 billion dirhams, recording a growth of 10 percent year-on-year. The balance sheet witnessed a strong expansion of 9 percent year-on-year to reach approximately 314 billion dirhams.
Customer deposits have now reached 222 billion dirhams, an increase of 12 percent year-on-year, as current and savings accounts constitute 37 percent of the customer deposit base. Interest in investment deposits increased, bringing their contribution to total deposits to 63 percent, up from 56 percent at the end of 2022.
Capital ratios remained strong with the Common Equity Tier 1 (CET1) ratio at 12.8 percent (down 10 basis points year-on-year) and the Capital Adequacy Ratio (CAR) at 17.3 percent (down 30 basis points year-on-year). Annual), both of which are well above regulatory requirements. Total equity reached 47 billion dirhams.
The highest profitability in the bank's history
Mohammed Ibrahim Al Shaibani, Director of the Ruler's Court of Dubai and Chairman of the Board of Directors of Dubai Islamic Bank, said that the UAE's economy continues to expand despite increasing difficulties in global financial conditions against the backdrop of high levels of inflation and moderate global growth. Financial markets in the GCC countries had a strong year, with Dubai achieving strong gains of more than 20 percent year-on-year, supported by a strong series of IPO deals and high trading volume. The banking sector has also demonstrated strong resilience, with healthy and growing balance sheets and higher profits.
He added, as for Dubai Islamic Bank, the year 2023 was an exceptional year by all standards, as the bank achieved the highest profitability in its history. The increase in the bank’s net profits to 7.01 billion dirhams, an increase of 26 percent year-on-year, is a direct result of our continued strategic efforts to develop this vital institution and enhance its leadership in the field of global Islamic finance.
