Dubai Islamic Bank (DIB) Q4 2025 earnings summary

Executive summary

• Achieved double-digit asset growth of 21% year-on-year, surpassing AED 400 billion in assets and revised guidance, with net financing and sukuk investments up 20% year-on-year, driven by broad-based business growth.

• Pre-tax net profit reached AED 9 billion, a 20% increase year-on-year on a normalized basis, with a proposed dividend of 35 fils.

• Asset quality improved, with non-performing financing ratio at a decade low of 2.65% and coverage ratio at 160%.

• Strong growth across all business segments: consumer, corporate, and treasury.

• Digital transformation accelerated, with 97% of transactions conducted digitally, 80% of new customers onboarded digitally, and digital user base up 15% year-on-year.

Financial highlights

• Operating revenues exceeded AED 13.2 billion, up 5% year-on-year on a normalized basis.

• Non-funded income increased 10% year-on-year, driven by fees, commissions, and FX.

• Net profit after tax on a normalized basis increased 18% year-on-year, despite a higher tax rate.

• Cost-to-income ratio at 28.4%, among the lowest in the UAE, though up from 26% guidance.

• Customer deposits rose 29% year-on-year to AED 320 billion.

Outlook and guidance

• 2026 guidance targets 10% net financing and sukuk growth, 2.3% net interest margin, 28% cost-to-income ratio, 21% return on tangible equity, 2.2% return on assets, non-performing financing ratio of 2.5%, and 160% total coverage.

• Focus on quality growth, capital efficiency, and maintaining strong asset quality.