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: “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. The financial markets in the Gulf Cooperation Council countries witnessed a strong year.” “Dubai achieved strong gains of more than 20 percent year-on-year, supported by a strong series of IPO deals and high trading volumes. The banking sector has also shown 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 on an annual basis, is a direct result of our continuous strategic efforts to develop this institution.” vitality, and strengthening its leadership in the field of global Islamic finance.”
He said, “Based on our firm support for the Year of Sustainability in the UAE, we are continuing our commitment to cooperate with the UAE Banks Federation to provide sustainable financing worth one trillion dirhams over the coming years. Dubai Islamic Bank has always been at the forefront of this commitment, through the issuance of sustainable sukuks worth 1.75 billion.” Dollars to support a growing portfolio of environmental, social and institutional governance activities. The bank will continue to promote and support climate action in the UAE and beyond in the coming years, through a long-term strategy developed by the bank for environmental, social and institutional governance.”
For his part, Dr. Adnan Chilwan, CEO of Dubai Islamic Bank Group, said: “Dubai Islamic Bank’s profitability recorded a record level during the past year, supported by significant growth in assets, recording stable costs, strong margins, and a strong recovery, which reflects healthy economic conditions.”
He added, “The bank continued its expansion agenda with its balance sheet growing by 9 percent year-on-year to reach AED 314 billion. The financing portfolio increased by 7 percent year-on-year to reach AED 199 billion in the field of corporate and individual financing, supported by an increase in the volume of corporate financing outside the UAE.” “The bank's financing and sukuk assets recorded a growth of 12 percent, including sukuks, exceeding our targets for the full year.”
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