Dubai Islamic Bank, listed on the Dubai Financial Market, said in a statement that this growth comes against the backdrop of higher core revenues, unfunded income, and a decline in impairment losses. Net financing and sukuk investments recorded a growth of 11.3 percent year-to-date to reach 265 billion dirhams.
The total new financing and sukuk investments in the first nine months of 2023 reached about 72 billion dirhams, compared to 43 billion dirhams in the same period last year. Total income reached 14.54 billion dirhams compared to 9.87 billion dirhams, recording a strong growth of 47.4 percent year-on-year.
Net profits in the third quarter of 2023 reached 1.71 billion dirhams (about $466 million), a growth of 6.7 percent on a quarterly basis and 22 percent on an annual basis.
The net profit margin grew to 3.1 percent (an increase of 10 basis points year-on-year), the rate of return on assets reached 2.2 percent, an increase of 20 basis points, and the rate of return on tangible equity reached 18.3 percent, an increase of 130 basis points since the beginning of the year. Year to date.
Highlights of the financial results for the first nine months of 2023:
- Net operating income achieved a strong growth of 11.7 percent year-on-year to reach 8.54 billion dirhams.
- Net operating profits reached 6.28 billion dirhams, recording a growth of 12 percent year-on-year, compared to 5.61 billion dirhams in the first nine months of 2022.
- The balance sheet has expanded by 8.7 percent year-to-date to reach approximately AED 313 billion.
- Customer deposits have now reached 221 billion dirhams, an increase of 11.2 percent year to date, with current and savings accounts accounting for 37 percent of the customer deposit base. The attractiveness of investment deposits increased their contribution to total deposits to 63 percent, up from 56 percent at the end of 2022.
- Impairment losses amounted to 1.4 billion dirhams, compared to 1.45 billion dirhams in the first nine months of 2022, a decrease of 3.0 percent. Likewise, losses in the third quarter of 2023 decreased by 10.5 percent year-on-year and by 2.7 percent quarter-on-quarter.
- The non-performing financing ratio improved to 6.04 percent, compared to 6.46 percent at the end of 2022, i.e. 42 basis points lower year-to-date and 31 basis points lower on a quarterly basis.
- The cost-to-income ratio continued to improve to 26.5 percent, 20 basis points lower year-on-year and maintaining its levels on a quarter-over-quarter basis.
- Liquidity maintained good levels, with the liquidity coverage ratio reaching 166 percent.
- Return on assets continued to improve and now stands at 2.2 percent (up 20 basis points year to date) and return on tangible equity at 18.4 percent (up 140 basis points year to date).
- Capital ratios remained strong with the Common Equity Tier 1 (CET1) ratio at 13.6 percent (up 70 basis points year-to-date) and Capital Adequacy Ratio (CAR) at 18.1 percent (up 50 basis points year-to-date). year), both of which are well above regulatory requirements. Total property rights amounted to 46 billion dirhams.
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