Dubai Islamic Bank Full Year 2024 Group Financial Results
Robust growth in total income rising by 16% YoY to AED 23 billion.
Pre-tax profit of AED 9.0 billion, solid growth of nearly 27% YoY.
Strong balance sheet expansion of nearly 10% YoY to AED 345 billion.
Sustained asset quality improvements with NPF ratio now at 4.0%, 140 bps lower YoY and beating guidance.
Enhanced stake in the digital bank in Türkiye to 25%.
Proposed dividend of 45%, subject to shareholder approval in AGM.
Dubai, February 11, 2025
Dubai Islamic Bank (DFM: DIB), the largest Islamic bank in the UAE, today announced its results for the financial year ending December 31, 2024.
FY 2024 Highlights:
Group Pre-Tax Profit registered AED 9,005 million up 27% YoY, while Group Net Profit came in at AED 8,165 million, up more than 16% YoY.
Total income reached AED 23,341 million compared to AED 20,142 million, a solid expansion of 16% YoY.
Net Operating Revenues showed a robust increase of 10% YoY to reach AED 12,837 million.
Net financing and sukuk investments increased to AED 295 billion, up 10% YoY. Strong net financing growth at 7% YoY to reach to AED 212 billion.
Total assets now at AED 345 billion, up by 10% YoY.
Customer deposits increased to AED 249 billion, up nearly 12% YoY with CASA deposit contributing over 38.1%, up 130 bps from 36.8% in end of 2023.
Impairment charges came at AED 407 million, significantly declining by 71% YoY against AED 1,396 million in FY 2023.
NPF significantly improved to 4.0% compared to 5.4% in YE 2023, lower by 140 bps YoY. Cash Coverage now at 97%.
Cost to income ratio lower by 40 bps YoY to 26.7%, as the bank continue to build efficiencies through automation and digitalization.
LCR remains robust at 159%.
Pre-tax RoA and RoTE at 2.8% and 24% respectively. Post-tax ROA stable at 2.5% (+20 bps YoY) and ROTE up to 22% (+200 bps YoY).
CET1 at 13.2% (+40 bps YoY) and CAR at 18.3% (+100 bps YoY), denoting strong capitalization.
Management’s comments for the financial year ending 31st December 2024:
His Excellency Mohammed Ibrahim Al Shaibani
Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank
Dr. Adnan Chilwan
Group Chief Executive Officer
The UAE has achieved record growth numbers across major economic indicators during the year. Overall GDP and non-oil GDP have shown healthy progress highlighting the strategic guidance of the leaders and the agenda set for this country. With robust economic fundamentals aligned to international trends, supported by knowledge and innovation, the country’s diversified economy is clearly on a path to achieve sustainable growth in the years to come.
Dubai continued to strengthen its economy during 2024 with growth being seen across all key areas of the economy including the domestic financial markets. From real estate, tourism, trade and banking services, the emirate demonstrated robust growth establishing itself as the world’s premier business hub supported by transformative projects and expanding economic opportunities.
We, at DIB have consistently pursued growth through innovation over the years in line with our commitment to the economic growth agenda of Dubai. This year’s outstanding results have solidified the bank as an undisputed leader in the financial industry. The confidence that the global investor community place on the franchise and the affirmations and acknowledgement received from external stakeholders are a clear testament to the value that we deliver to the financial sector of the UAE.
The UAE banking sector continues to reaffirm its solid position as the largest in the region. The balance sheet expansion across the sector reflects the fast-growing domestic business activities in line with the economic growth plans to transform and accelerate the UAEs economic progress.
2024 proved to be another record year for DIB with our earning assets growing by 10% YoY to AED 295 bn and balance sheet rising by a similar trend to AED 345 bn beating our full year guidance. Growth was supported by gross new underwriting crossing the AED 100 billion mark during the year, a significant feat amidst a strong competitive environment.
During the year, the bank made huge strides in enhancing its business and processes across the entire organization, strengthening resources, investing in innovation including critical upgrades of our technological platforms to cater towards the fast growing digital economy.
UAE today is viewed by the world as a nation without boundaries. There is no limit to what can be done. The leadership has instilled this culture of openness inviting the world to be part of and contribute to the growth and prosperity of the nation. This approach has been the platform on which DIB’s progressive agenda is built and we continue to see new opportunities for our business in the years to come.
Financial Review
Income statement summary
AED millions
Dec 2024
Dec 2023
YoY % change
Total Income
23,341
20,142
16%
Depositors’/ Sukuk holders share of profit
(10,505)
(8,477)
24%
Net Operating revenue
12,837
11,665
10%
Operating expenses
(3,425)
(3,162)
8%
Profit before impairment losses
9,412
8,503
11%
Impairment losses
(407)
(1,396)
(71%)
Pre tax profit
9,005
7,108
27%
Income tax
(840)
(98)
760%
Net profit for the period
8,165
7,010
16%
Key Ratios (%)
Dec 2024
Dec 2023
Change (bps)
Net Profit Margin %
3.0%
3.1%
(10 bps)
Cost to income ratio %
26.7%
27.1%
(40 bps)
Pre-tax return on average assets %
2.8%
2.3%
50 bps
Pre-tax return on tangible equity %
24%
20%
400 bps
Return on average assets %
2.5%
2.3%
20 bps
Return on tangible equity %
22%
20%
200 bps
Balance Sheet Summary
AED millions
Dec 2024
Dec 2023
Change
Net Financing and Sukuk Investments
294,588
267,626
10.1%
Equities & Properties Investments
8,797
9,954
)11.6%)
Other Assets
8,960
8,209
9.1%
Due from banks and financial institutions
5,642
4,484
25.8%
Cash & CB Balances
26,700
24,019
11.2%
Total assets
344,687
314,292
9.7%
Customers’ deposits
248,546
222,054
11.9%
Sukuk financing instruments
24,154
20,481
17.9%
Other liabilities
13,280
11,355
16.9%
Total liabilities
291,834
266,857
9.4%
Shareholder Equity & Reserve
39,725
36,293
9.5%
Tier 1 Sukuk
10,101
8,264
22.2%
Non-Controlling interest
3,028
2,877
5.3%
Total liabilities and equity
344,687
314,292
9.7%
Key Ratios (%)
Dec 2024
Dec 2023
Change (bps)
Liquidity Coverage Ratio (LCR)
159.4%
188.7%
(2,930 bps)
CET 1
13.2%
12.8%
40 bps
Capital Adequacy Ratio (CAR)
18.3%
17.3%
100 bps
Non-Performing Financing (NPF)
4.0%
5.4%
(140 bps)
Coverage
97%
90%
700 bps
Operating Performance
The bank’s Total Income rose to AED 23,341 million in FY 2024 depicting a solid growth of 15.9% YoY compared to AED 20,142 million. Growth was supported by non-funded income which grew by 33% YoY. Net Operating Revenue grew by 10.1% YoY to reach AED 12,837 million compared to AED 11,665 million last year.
Pre-impairment profit increased by 10.7% YoY reaching AED 9,412 million compared to AED 8,503 million in 2023. Impairment charges stood at AED 407 million down by a significant nearly 71.0% YoY, primarily coming from significant releases given the highly improved market conditions.
Operating expenses amounted to AED 3,425 million for the year vs AED 3,162 million in 2023, exhibiting 8.3% YoY increase stemming from continued investments in our resources, technology and robust controls. Cost income ratio, however registered 26.7%, lower by 40 bps YoY, as the bank continues to build efficiencies.
Pre-tax profit grew by 26.7% YoY to reach AED 9,005 million. Group Net Profit increased by 16.4% YoY to reach AED 8,165 million vs AED 7,010 million in 2023.
Net profit margin at 3.0% lower by 10 bps YoY. Despite that, returns continue to trend higher with Pre-tax ROA and ROTE standing at 2.8% and 24% respectively. Post tax ROA came in at 2.5% (+20 bps YoY) while ROTE stands at 22% (+200 bps YoY).
Balance Sheet Trends
Gross new underwriting and sukuk investments during the year significantly increased to AED 102 billion, a solid growth of 16% YoY compared to AED 88 billion the previous year. Both retail and corporate demonstrated strong growth at 23% YoY and 18% YoY, respectively.
Net movement before early settlements continued to be healthy showing a 17% YoY growth. Corporate financing early settlements remained a challenge as the bank witnessed a 66% YoY growth in early settlements.
Net financing & Sukuk investments stood at AED 295 billion, up by more than 10% YoY from AED 268 billion in FY 2023. Business growth was supported by net financing growth of nearly 7% YoY to AED 212 billion and sukuk investment growth of more than 20% YoY to AED 82 billion.
Overall balance sheet of the bank continued its healthy expansion of almost 10% YoY to now reach AED 345 billion.
Customer deposits registered AED 249 billion up by nearly 12% YoY. CASA reached AED 95 billion up by more than 15% YoY and comprising 38% of deposits. Investment deposits contribution remained stable at 62% of overall deposits and also witnessed a growth of nearly 10% YoY. Liquidity coverage ratio (LCR) at 159.4%.
Non-performing financing (NPF) should be in bold ratio significantly improved to 4.0%, down by 140 bps compared to FY 2023. The NPF absolute amount decreased by AED 2.4 billion to AED 9.1 billion compared to AED 11.5 billion in 2023, a clear indication of improving credit quality across the sector.
Stage 1 financing is up by nearly 10% to cross over AED 199 billion while Stage 2 financing ended the period at AED 10.9 billion down 24% YoY. Similarly, Stage 3 coverage increased to 78.9% as stage 3 exposure dropped by more than 20% YoY to just over AED 9 billion.
Cash coverage ratio now stands at 97% and overall coverage including collateral at 138%. Cost of risk came in at 14 bps compared to 57 bps in FY 2023.
Capital ratios continue to remain strong with CAR at 18.3% and CET 1 ratio at 13.2%, both well above the regulatory requirement.
Business Performance (FY 2024)
Consumer Banking portfolio reached AED 63 billion witnessing a strong growth of 13% YoY. The portfolio’s total gross new underwriting reached nearly AED 27 billion, which was 23% higher compared to previous year of AED 22 billion. All consumer products witnessed healthy growth driven primarily by cards and auto financing which saw growth of nearly 29% YoY and 25% YoY respectively. The launch of a new branded covered card and strong campaigns on electric vehicles (EVs) supported the growth of both segments during the year.
Corporate banking portfolio reached AED 149 billion up 4% YoY. Revenues increased by 17% YoY to AED 3.4 billion. On the funding side, corporate deposits had a strong increase by 19% on a YoY basis while CASA had a robust growth of 39% YoY, as the bank continued to attract strategic corporate clients.
Treasury also had a remarkable year growing by more than 20% YoY to reach to AED 82 billion. Gross new underwriting on sukuk investments grew by 5% YoY to reach to AED 21.7 billion. Yields continue to be attractive at 4.99%.
Key Highlights (Q4 2024)
The bank signed a partnership with Crypto.com to explore multiple opportunities to introduce Shariah compliant platforms including tokenized Islamic Sukuks and real-world asset tokenization. The partnership focuses on several key areas of collaboration including promoting the Crypto.com App and Card through DIB’s channels, with reward-based campaigns for DIB’s customers, and facilitating cryptocurrency payments via DIB’s systems. This collaboration allows the bank to set new-age standards for Shariah compliant financial solutions.
The bank recently relaunched the DIB XTRA Salary Transfer Campaign to reward citizens and residents of the UAE who are looking for an enhanced banking experience. Synonymous with its name, XTRA, the re-energised campaign is loaded with extra benefits that are designed to provide a complete array of unmatched privileges for customers. With this successful launch, DIB is reinforcing its commitment to providing meaningful solutions to customers – solutions that truly matter to them.
DIB Auto Finance has launched the new Auto Finance Product – ACCESS Auto Finance, a bespoke financing solution specifically tailored for People of Determination. This innovative offering is a beacon of DIB’s relentless drive toward inclusivity and innovation, offering unprecedented ease of access and autonomy in mobility for all its customers. The new offering also opens doors to enhanced mobility for People of Determination across the UAE and contributes further to the organizations agenda of leading the sustainability space.
In 2024, DIB continued to be at the forefront of the Islamic financing and capital markets space having completed over 40 transactions valued at a total of USD 38 bn out of which more than USD 6 bn where in the sustainability/ESG space. DIB executed high profile deals for a range of clients from sovereigns, supranationals, quasi-sovereigns, large corporates to financial institutions. This strong performance has led to DIB amongst the top players in the US Dollar International Sukuk league tables in 2024.
DCM and Syndication Deals (FY 2024)
Sukuk (USD)
Issuer /Obligor
Type
Coupon (%)
Amount Issued (US$m)
Tenor (Y)
First Abu Dhabi Bank
Financial Institution
4.779
800
5
Kuwait Finance House
Financial Institution
5.011
1,000
5
Omantel
Corporate
5.375
500
7
Kingdom of Bahrain
Sovereign
6
1,000
7
Saudi Electricity Company
Corporate
4.942/5.194
800 / 1,400
5 &10
ESIC
Corporate
5.831
700
5
Saudi National Bank
Financial Institution
5.129
850
5
Bingatthi
Corporate
9.625
300
3
Dubai Islamic Bank
Financial Institution
5.243
1,000
5
Public Investment Fund
SWF
5.171
2,000
7
Arabian Center
Corporate
9.5
500
5
Al Rajhi Bank
Financial Institution
5.047
1,000
5
Kuwait International Bank
Financial Institution
6.625
300
Perp
Aldar Properties
Corporate
5.584
500
10
Islamic Development Bank
Supranational
4.754
2000
5
Al Rajhi Bank AT1
Financial Institution
6.375
1,000
5.5
Emirates Islamic Bank
Financial Institution
5.431
750
5
Arada
Corporate
8
400
5
Damac Properties
Corporate
8.375
100
3
Govt. of Indonesia
Sovereign
5.1 / 5.2 / 5.5
750 /1,000/ 600
05/10/30
Energy Development Bank
Corporate
5.662
750
7
Sharjah Islamic Bank
Financial Institution
5.25
500
5
Warba Bank
Financial Institution
5.351
500
5
Binghatti Sukuk Tap
Corporate
9.625
200
3
PIF
SWF
4.488
1500
3
Sobha TAP
Corporate
7.8
230
4
QIIB
Financial Institution
5.45
300
6
Arada tap
Corporate
8
150
5
Saudi Aramco
GRE
4.25 / 4.75
1,500 / 1,500
'5 / 10
Aercap
Corporate
4.65
500
5
Dukhan Bank
Financial Institution
4.56
800
5
Islamic Development Bank
Supra National
4.05
1250
5
Government of Sharjah
Sovereign
5.433
750
10.5
Dubai Islamic Bank
Financial Institution
5.25
500
Perp
TWF
Corporate
6.95
750
5.25
Republic of Indonesia
Sovereign
5.00/5.25/5.65
1,100/900,750
5.5/10/30
Republic of Turkiye
Sovereign
6.875
2,500
5.50
Kingdon of Bahrain
Sovereign
5.875
1,250
Long 7
SUKUK (AED)
Issuer / Obligor Name
Issuer Type
Coupon (%)
Amount Issued
(AED mn)
Tenor
ESG
Government of Sharjah
Sovereign
5.500
1,000
5Y
No
CLUB / SYNDICATED TRANSACTIONS
Obligor Name
Obligor Type / Sector
Total Deal Value
(USD or USD
eqv. In Mn)
Closing Date
Sharjah Airport
Airport/Contracting
218
Jan 2024
Saudi Electricity
Power Generation electricity
3,000
Jan 2024
Saudi Telecom
Telecommunication
1,600
Mar 2024
Gov. of Egypt
Sovereign
1,304
June 2024
Kingdom of Bahrain
Sovereign
1,000
Sep 2024
Kingdom of Saudi Arabia
Sovereign
SAR 23,294
Oct 2024
Turkiye Wealth Fund
Sovereign Wealth Fund
150
Nov 2024
Govt. of Egypt
Sovereign
2,000
Dec 2024
Arab Petroleum Investment Corporation
Multilateral
500
Dec 2024
Kingdom of Saudi Arabia
Sovereign
2,500
Dec 2024
Public Investment Fund
Sovereign Wealth Fund
7,000
Dec 2024
Saudi Electricity
Power Generation electricity
3,600
Dec 2024
Awards List (FY 2024)
Date
Award Giving Body
Award Received
February 2024
Capital Markets & ESG Finance Saudi Arabia Awards
Acquisition Finance Deal of the Year
ECA, DFI, IFI Deal of the Year
Transport Finance Deal of the Year
Power Finance Deal of the Year
Corporate Bond Deal of the Year
March 2024
Middle East Banking Award
Middle East - Best Product Launch (Retail)
Oman - Best Foreign Investment Bank, recognized for the successful issuance of the Energy Development Oman Sukuk, alongside other participating banks.
United Arab Emirates - Best Sukuk House
March 2024
Lexzur Legal Tech Innovation Award 2024
Lexzur Legal Tech Innovation Award 2024
March 2024
DIB Legal ISO Certification Event
ISO 9001:2015 Certification
April 2024
Forbes Middle East
DIB Ranked 14th amongst the Middle East’s 30 Most Valuable Banks 2024
April 2024
Islamic Finance News Awards (IFN)
Best Overall Deal of the year
Best Islamic Retail Bank
Best Islamic Bank in the UAE
Social Impact, SRI ESG Deal
Indonesia Deal of the Year
Sovereign & Multilateral Deal of the Year
UAE Deal of the Year
Best Islamic Bank in Kenya
Corporate Finance Deal of the Year
Real Estate Deal of the Year
Syndicated Finance Deal of the Year
IFN Hybrid Deal of the Year 2023
May 2024
MEA Finance Banking Technology Awards
Best Innovation in Retail Banking for Evolve
Best Digital Innovation in Islamic Banking of the Year for 'alt'
May 2024
Euromoney Awards for Excellence 2024
UAE’s Best Bank for Diversity & Inclusion
June 2024
Forbes Middle East
DIB Ranked 21st amongst the Middle East’s Top 100 Listed Companies 2024
June 2024
MEA Business Achievement Awards 2024
Banking and Finance - Outstanding Sustainability Initiative Dubai Islamic Bank
Outstanding New Product/Service Launch DIB Nest
Banking and Finance - Exceptional Products/Services DIB ‘alt’
July 2024
Centre of Assessments for Excellence
ISO 45001 Certification
November 2024
MEA Finance Industry Award 2024
Best Sustainable Finance Initiative
Best Sukuk Islamic Fund
Best Sukuk Deal of the Year
Best Islamic Bank - UAE
Best Islamic Digital Banking Provider
Posted by : DubaiPRNetwork.com Editorial Team Viewed 15662 times PR Category :Business and Economy Posted on : Wednesday, February 12, 2025 9:17:00 AM UAE local time (GMT+4)
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