06/08/2025 06:58 AST
Dubai Islamic Bank (DIB) reported another robust performance in the first half of 2025, with operating revenue of AED6.4 billion ($1.74 billion), driving a 16% YoY increase in pre-tax profit to AED4.3 billion.
Double-digit growth in financing and deposits, coupled with improved asset quality, underpinned another historic milestone as the balance sheet surpassed the $100 billion mark.
According to the financial results, net profit grew to AED3.7 billion as core business momentum continues, reflecting an improvement in cost of risk.
H1 2025 performance highlights
*Profitability: Pre-tax profit advanced 16% YoY to AED4.3 billion, supported by 5% increase in topline driven by strong volumes across all business lines. Net profit grew to AED3.7 billion as core business momentum continues, reflecting an improvement in cost of risk.
* Impairment charges declined 61% YoY to AED256 million, driven by prudent underwriting and effective risk management, further contributing to growing profitability.
* Balance Sheet: Balance sheet expanded by 8% YTD to AED373 billion, surpassing the $100 billion mark.
* Net Financing Assets grew 12% YTD to AED237 billion reflecting healthy demand across key customer segments.
* On the wholesale front, both local and cross-border businesses contributed to this growth across sectors such as sovereigns, utilities, and aviation. The consumer business also recorded solid growth across all product lines.
* Sukuk portfolio grew 9% YTD to AED 89 Bn. This portfolio largely comprises of high-quality and well-rated sovereigns and FIs.
* Customer deposits rose 14% YTD to AED284 billion, underpinned by robust customer acquisition and retention.
* A landmark year: The bank celebrated its 50th anniversary this year, a historic milestone reflecting five decades of pioneering Shariah-compliant banking. Since its inception in 1975, DIB has played a leading role in shaping the global Islamic finance landscape and now serves more than 5 Mn customers globally. The year also witnessed the unveiling of a new corporate identity, reinforcing a vision centred on innovation, sustainability, and purpose-driven growth.
Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler's Court of Dubai and Chairman of DIB, said: "The strength of an economy is measured by its capacity to grow responsibly, remain rooted in core principles, and maintain stability amid change. The United Arab Emirates has consistently exemplified these attributes. In the face of evolving global dynamics, it continues to stand as a model of resilience and foresight, underpinned by leadership that harmonises ambition with purpose.
"The financial sector plays a central role in reinforcing this foundation. Within it, DIB has sustained its performance through sound governance and a steadfast commitment to value-based banking. The results delivered in the first half of the year reflect a legacy of progress shaped by five decades of alignment with the nation's development agenda.This year marks a defining milestone in that journey.
"Our strong governance, long-term outlook, and enduring commitment to responsible growth ensure that the bank is well-positioned to continue creating lasting value to all stakeholders," he said.
Dr Adnan Chilwan, Group Chief Executive Officer of DIB, said: "As we advance through this landmark year, marking five decades since DIB's founding, our first-half performance reflects disciplined execution in clear alignment with the direction defined at the outset of our current growth agenda. The milestone of surpassing $100 billion in total assets is not a measure of scale alone, but of a deeply ingrained intent. It is a reflection of disciplined execution against a long-term strategy to transform a concept into a global norm.
"Despite the volatilities around we delivered a significant 16% rise in pre-tax profit which exceeded AED4.3 billion. Whilst the introduction of corporate tax this year adds a new element, our post-tax profit also came in strong at AED3.7 billion, a solid increase of 10%. The robust profitability has led to an equally strong return on equity of 21%."
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