Dubai Islamic Bank (DFM: DIB), the largest Islamic bank in the UAE, today announced its results for the period ending September 30, 2022.
9M 2022 Highlights:
Management’s comments for the period ending 30th September 2022:
His Excellency Mohammed Ibrahim Al Shaibani
Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank
Dr. Adnan Chilwan
Group Chief Executive Officer
Income statement summary
YoY % change
|Depositors’/ Sukuk holders share of profit|
|Net Operating revenue|
|Profit before impairment losses & income tax|
|Net profit for the period|
|Key Ratios (%)|
|Net Profit Margin %|
|Cost to income ratio %|
|Return on average assets %|
|Return on tangible equity %|
Balance Sheet Summary
YTD % change
|Net Financing and Sukuk Investments|
|Equities & Properties Investments|
|Due from banks and financial institutions|
|Cash & CB Balances|
|Sukuk financing instruments|
|Shareholder Equity & Reserve|
|Tier 1 Sukuk|
|Total liabilities and equity|
|Key Ratios (%)|
|Liquidity Coverage Ratio (LCR)|
|Capital Adequacy Ratio (CAR)|
|Non-Performing Financing (NPF)|
The bank’s total income rose to AED 9,873 million in 9M 2022 demonstrating a healthy YoY growth of 10% compared to AED 8,946 million in same period of last year driven by strong income from financing assets. This is clearly reflected in the Net Operating Revenue which grew by 7% YoY to reach to AED 7,653 million compared to AED 7,149 million last year.
Pre-impairment profit during 9M 2022 increased by 6% YoY reaching to AED 5,612 million compared to AED 5,275 million. Underwriting quality remains robust resulting in significantly lower impairment charges amounting to AED 1,450 million vs AED 2,174 million last year, an improvement of 33% YoY.
Operating expenses amounted to AED 2,040 million during 9M 2022 vs AED 1,874 million in 9M 2021 exhibiting a 9% YoY increase. The bank continues to focus on scaling up critical support functions in line with increasing regulatory requirements and strengthening group wide control oversight including enhanced monitoring on the bank’s subsidiaries. Following higher revenue growth, cost income ratio is still maintained at a sector leading position at 26.7%.
As a result, the bank’s Group Net Profit witnessed a significant rise of 34% YoY to reach AED 4,101 million vs AED 3,069 million in 9M 2021.
Net profit margin increased to 2.9% (+30bps YTD) with ROA and ROTE at a healthy 2% and 16.8% respectively.
Balance Sheet Trends
Net financing & Sukuk investments stood at AED 236 billion, a rise of 3% YTD from AED 228.5 billion in 2021. Sukuk investments, another key focus of the bank, grew strongly by 17% YTD to reach to AED 49 billion.
DIB witnessed YTD growth in new corporate financing origination of nearly AED 20 billion driven mainly by public and private sectors, while new bookings from consumer financing accounted for AED 13 billion, exhibiting DIB’s prowess in deploying financing assets despite the ongoing market volatilities, offset by routine repayment of AED 9 billion and AED 11 billion from Corporate and Consumer financing respectively. This new underwriting has been offset by early settlements in the corporate portfolio to the tune of AED 13 billion YTD as the segment witnessed a sharp rise in settlements during the 3rd quarter on the back of a rising rate environment and excess liquidity, primarily stemming from large corporate government and related entities.
Customer deposits stood at AED 187 billion at the end of 9M 2022 with CASA now standing at AED 77 billion sitting comfortably at 42% of deposits. The increasing competitive environment has led to deposits declining by 9% YTD, primarily driven by DIB’s deliberate policy to release high cost deposits and protect the margins. Despite this, liquidity coverage ratio (LCR) at 123% remains above regulatory requirement, depicting balance sheet efficiency.
Credit quality remained intact with non-performing financing (NPF) ratio seeing a decline of 30bps YTD to 6.5% and stable QoQ. NPF has now declined by a healthy 4% YTD to AED 13,227 million from AED 13,784 million. The main improvement came from DIB’s core NPF portfolio which improved by 3% while NMC and NOOR POCI (which constitute 17% of NPFs) both declined by a combined 10%, due to ongoing recoveries. Stage 3 coverage accordingly improved to nearly 60%, (+310 bps) from YE2021. Stage 2 loans dropped to AED 17 billion versus AED 20 billion during YE2021, a 15% drop depicting improving quality of the book. Stage 2 coverage accordingly improved to 6.9% compared to 5.6% in YE2021.
Cash coverage ratio improved to 76% (+400 bps YTD) and overall coverage including collateral at 105% (+280bps YTD) underpinning DIB’s overall prudent risk strategy. Cost of risk on gross financing assets now stands at 79 bps compared to 99 bps for the year 2021, an improvement of 20 bps YTD.
Capital ratios continue to remain strong with CAR now at 18.6% and CET 1 ratio at 13.9%, both well above the regulatory requirement.
Business Performance (Year to Date)
Consumer Banking remains solid with total new underwriting of AED 13 billion YTD driven by Personal Finance and Home Finance which had a combined new underwriting of AED 9 billion YTD. The consumer portfolio now stands at AED 53 billion marginally up from AED 51 billion in YE 2021. The business generated AED 3 billion in revenues during the nine-month period up 11% YoY from AED 2.7 billion during 9M 2021. Blended yield on consumer financing grew by 22bps YoY to reach to 5.81%.
Corporate banking portfolio now stands at AED 144 billion with government and service sectors contributing strongly to this portfolio. The business booked AED 20 billion in new underwriting year to date despite global market volatilities as UAE continues its economic rebound this year. YTD revenues grew strongly to reach to AED 2.7 billion, up 14% YoY compared to AED 2.3 billion during 9M 2021. Yield on corporate financing portfolio continues its upward trend now reaching 3.4%, an increase of 66 bps YoY.
Key Business Highlights (Year to Date)
DCM and Syndication Deals (Year to Date)
Issuer / Obligor Name
Profit Rate (%)
|Govt. of Pakistan|
|Dubai Islamic Bank|
|Republic of Turkey|
|First Abu Dhabi Bank|
|Govt. of Sharjah|
|Islamic Development Bank|
|Republic of Indonesia|
|Private Department of Skh Mohammad Bin Khalid Al Nahyan LLC|
CLUB / SYNDICATED TRANSACTIONS
Obligor Type / Sector
Total Deal Value
(USD or USD
eqv. In Mn)
|Tecom Investments LLC||Corporate / Real Estate|
|Abu Dhabi Oil Refining Company|
Corporate / Energy
|ICD-Brookfield Management Ltd.|
Year to Date Awards List
Award Giving Body
DIB Ranked 10th amongst the Middle East’s Top 30 Banks 2022
|Emirates Institute for Banking and Financial Studies (EIBFS)||The Best Engagement in the Training & Emiratization Award|
|GCC GOV Youth Empowerment Awards 2022||Organization of the Year for Youth Empowerment in Banking and Finance|
|Forbes ME||DIB ranked amongst the Middle East’s Top 100 Listed Companies 2022|
|Islamic Finance News Awards|
Kuwait Deal of the Year
Best Islamic Retail Bank
Best Islamic Bank - UAE
Sovereign & Multilateral Deal of the Year
Best Islamic Bank - DIB Kenya
Hybrid Deal of the Year
Turkey Deal of the Year
Saudi Arabia Deal of the Year
Overall Deal of the Year
Overall Best Islamic Bank
|MEA Finance Banking Technology Awards 2022|
Best Digital Innovation in Islamic Banking of the Year
Best Islamic FinTech Solutions Implementation – rabbit by Dubai Islamic Bank
|Al Bayan Magazine||DIB ranked 11th amongst Top 150 Arab banks in the Middle East|