Dubai Islamic Bank (DIB) Q4 2024 earnings summary

Executive summary

• Achieved record financial performance in 2024, with total income up 16% year-over-year to AED 23.34 billion, pre-tax profit up 27% to AED 9 billion, and net profit up 16% to AED 8.2 billion, supported by robust economic conditions and digital expansion.

• Balance sheet grew nearly 10% to AED 345 billion, with net financing and sukuk investments reaching AED 295 billion, and customer deposits up 12% to AED 249 billion.

• Asset quality improved significantly, with the non-performing financing ratio dropping to 4.0% (down 140 bps YoY), cash coverage at 97%, and total coverage at 138%.

• Accelerated digital transformation and sustainability initiatives, including the launch of a digital bank in Turkey, new AI-driven solutions, and issuance of a USD 1 billion Sustainable Sukuk.

• Celebrated 50th anniversary, reinforcing leadership in Islamic finance and commitment to innovation, sustainability, and global expansion.

Financial highlights

• Net operating revenue rose 10% YoY to AED 12.8 billion; impairment charges dropped 71% YoY to AED 407 million.

• Cost-to-income ratio improved to 26.7%; net profit margin at 3.0%.

• Pre-tax ROA at 2.8%, pre-tax ROTE at 24%, post-tax ROA at 2.5%, and post-tax ROTE at 22%.

• Earnings per share increased to AED 1.04 from AED 0.88 YoY.

• Operating expenses increased 8% YoY to AED 3.4 billion, reflecting ongoing investments in technology.

Outlook and guidance

• 2025 guidance targets 15% growth in loan and sukuk portfolios, NPF ratio of 3.5%, cost-to-income ratio at 26%, and return on assets projected at 2.4%.

• Total coverage ratio expected to reach 140%, with cash coverage anticipated above 100%.

• Strategic focus on sustainable growth, digital innovation, and global expansion, with confidence in achieving new milestones.