Press Release:
Dubai Islamic Bank Nine Months 2022 Group Financial Results
o Significant increase in profitability of 34% YoY to reach to AED 4.1 billion, highest ever nine-
month performance in history.
o Considerable rise in total income by 10% YoY to AED 10 billion.
o Improving impairment provision coverage to 76% (up 400 bps YTD) exhibiting DIB’s prudent
risk strategy.
o Substantial improvement in RoTE registering 16.8% up 380 bps YTD.
Dubai, October 25, 2022
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:
• Substantial growth in Group Net Profit of 34% YoY to AED 4,101 million vs AED 3,069 million in same period
last year. The strong growth was driven by rising core revenues and sustained lower impairments.
• Net financing and sukuk investments grew by 3.3% YTD to AED 236 billion. The bank attained nearly AED
43 billion YTD in gross new underwriting.
• Total income reached to AED 9,873 million compared to AED 8,946 million, double digit growth of 10% YoY
and 11% QoQ.
• Net Operating Revenues showed a robust 7% YoY increase and 2% sequentially to reach AED 7,653 million.
• Net Operating Profit now at AED 5,612 million, a strong increase of 6% compared to AED 5,275 million in
9M 2021.
• Balance sheet remains robust at AED 275 billion, marginally lower by 1.5% YTD.
• Customer deposits now at AED 187 billion with CASA comprising 42% of the deposit base.
• Impairment charges continue to decline registering AED 1,450 million against AED 2,174 million in previous
year, lower by 33% YoY, demonstrating resilience of the financing book.
• NPF ratio continues its downward momentum now at 6.5% lower by 30 bps YTD compared to 6.8% in 2021.
• Cost to income still strong at 26.7% down 10 bps from YE2021.
• Liquidity remains healthy with LCR of 123%.
• Continued healthy improvement on ROA now at 2.0% (+50bps YTD) and ROTE at 16.8% (+380bps YTD).
• Capitalization levels remain robust with CET1 at 13.9% (+150bps YTD) and CAR at 18.6% (+150bps YTD),
both well above the minimum regulatory requirement. Total equity now stands at AED 43 billion.
Dubai Islamic Bank PJSC | PO Box 1080, Dubai, United Arab Emirates | https://www.dib.ae/Management’s comments for the period ending 30th September 2022:
• Business and operating conditions in the UAE continue to strengthen
despite moderating global growth, driven by recovery in travel and
tourism, retail business spending and the implementation of new
residency reforms. The UAE financial system continues to demonstrate
expansion and resilience with DIB reinforcing the sector’s recovery and
growth agenda through its strong financial performance to date.
• The bank’s third quarter profitability metrics and ratios have been
remarkable with 10% YoY growth in total income reaching nearly AED 10
His Excellency Mohammed billion and ROA 2.0% (+50 bps YTD) and RoTE 16.8% (+380 bps YTD)
Ibrahim Al Shaibani
surpassing our full year guidance’s and exhibiting its dynamic capabilities
Director-General of His despite the on-going subdued global economic environment.
Highness The Ruler’s
Court of Dubai and • The Board has full confidence in UAE’s efforts in demonstrating
Chairman of Dubai Islamic
effectiveness to the Financial Action Task Force (FATF). We continue to
Bank
engage with regulators on the compliance and risk agenda and optimize
investments in this critical area to ensure that the bank has the most
stringent controls in place to help address financial crimes and frauds as
well as money laundering, which has been a top emerging international
risk on the global banking sector over the past few years.
• Amidst the on-going unprecedented environment, the bank’s incredible
performance to date with net profits rising by 34% YoY to reach AED 4.1 billion
has been the highest ever nine months performance in the bank’s history. This
feat is a true testament of our robust strategy that we have set at the
beginning of the year where we aim to deliver further value to our
shareholders and continue to unlock growth opportunities. This has led to our
margins to further improve by 30 bps YTD.
Dr. Adnan Chilwan
• The strong improvements in our asset quality has been gaining momentum
Group Chief Executive
Officer over the past few quarters with significantly lower impairments of 33% YoY
and NPF ratio at 6.5% (-30 bps YTD). Our overall coverage ratios have been
increasing depicting our strong prudent approach to risk management.
2• At DIB, we have always been committed to enhancing shareholder value. This
is clearly reflected in our deliberate approach to building greater efficiency
within our balance sheet. Today, we are at the best cost to income ratio in the
market at 26.7%. This, aligned with our outstanding liquidity management,
has led to the significant upside in profitability, positively impacting both RoTE
at 16.8% and ROA at 2%.
• DIB continues to demonstrate resilience with strong capital and liquidity ratios
which are expected to remain robust over the upcoming period. This is despite
the CBUAE withdrawal of the liquidity schemes.
• Our digital aspirations continue to accelerate with double digit YoY growth
across key metrics supported by enhanced journey experiences and services as
well as on-going digital marketing promotions and campaigns to our large
customer base.
• As a Domestic Systemically Important Bank (DSIB), DIB has embarked on a
journey to majorly upgrade its Compliance function in line with regulatory
expectations. This involves number of tactical and strategic measures that are
currently in different stages of implementation. Heightened governance in this
area is aimed at embedding a strong compliance culture across all levels
within the organization’s three lines of defense. Compliance leadership, skill
set and capacity has been significantly strengthened as part of this journey.
• Our commitments to long term sustainable business practices has been
relentless in line with UAE’s global sustainability aspirations and we are now
moving towards the next phase of our ESG journey with more commitments
and re designing our operating model to further embed ESG across the various
internal functions as well as enhanced risk monitoring.
3Financial Review:
Income statement summary
AED millions 9M 2022 9M 2021 YoY % change
Total Income 9,873 8,946 10%
Depositors’/ Sukuk holders share of profit (2,220) (1,797) 24%
Net Operating revenue 7,653 7,149 7%
Operating expenses (2,040) (1,874) 9%
Profit before impairment losses & income tax 5,612 5,275 6%
Impairment losses (1,450) (2,174) (33%)
Income tax (61) (32) 90%
Net profit for the period 4,101 3,069 34%
Key Ratios (%) 9M 2022 Dec 2021 Change (bps)
Net Profit Margin % 2.9% 2.6% 30 bps
Cost to income ratio % 26.7% 26.8% (10 bps)
Return on average assets % 2.0% 1.5% 50 bps
Return on tangible equity % 16.8% 13.0% 380 bps
Balance Sheet Summary
AED millions 9M 2022 Dec 2021 YTD % change
Net Financing and Sukuk Investments 236,104 228,485 3.3%
Equities & Properties Investments 9,917 10,221 (3%)
Due from banks and financial institutions 2,931 3,303 (11%)
Cash & CB Balances 16,840 28,079 (40%)
Total assets 274,856 279,082 (2%)
Customers’ deposits 186,512 205,845 (9%)
Sukuk financing instruments 19,592 20,563 (5%)
Total liabilities 231,709 237,617 (2%)
Shareholder Equity & Reserve 32,230 30,602 5%
Tier 1 Sukuk 8,264 8,264 -
Non-Controlling interest 2,653 2,599 2%
Total liabilities and equity 274,856 279,082 (2%)
Key Ratios (%) 9M 2022 Dec 2021 Change (%)
Liquidity Coverage Ratio (LCR) 123.0% 136.3% (13%)
CET 1 13.9% 12.4% 1.5%
Capital Adequacy Ratio (CAR) 18.6% 17.1% 1.5%
Non-Performing Financing (NPF) 6.5% 6.8% 0.3%
Coverage 76.0% 72.0% 4%
4Operating Performance
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
59% 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)
• In line with the bank’s corporate sustainability strategy demonstrating commitment to support the UAE’s
transformation into a green and sustainable economy, DIB unveiled new Green Auto Finance “EVolve”, a
6holistic solution aiming to contribute to a cleaner environment by providing solutions around buying Electric
and Hybrid cars, encouraging customers to invest in environmentally friendly vehicles. With DIB’s EVolve,
customers can avail discounted processing fees and market leading preferential profit rates for both brand
new and second-hand vehicles. Among the wide range of benefits, DIB customers will also enjoy a completely
paperless and hassle-free financing experience that takes no more than a day, with the entire process of
application and fulfillment executed digitally. EVolve is another one of the many initiatives the bank has taken
in line with the strategy to progress towards a future-proof and sustainable bank. The bank remains committed
towards launching more environmentally friendly products to further solidify and preserve the environment for
future generations.
• Following on the launch of our inaugural five-year customer experience strategy in early 2022, DIB Customer
Service (CS) week was launched to mark the international celebration of the importance of customer service
and of the people who serve and support customers on a daily basis. This was the first time DIB celebrates
the CS week in line with the initiatives under the “culture and mind shift change” pillar within the Customer
Experience Strategy. The objective of the initiative is to raise awareness of the value of customer service,
reinforce customer satisfaction across our branches and service centers and boost morale and teamwork. The
bank also picked up three awards at the Happiness Annual Awards session in September, aimed at
acknowledging and rewarding employees who have a positive impact within their organizations in spreading
happiness and great service to internal and external customers.
• Dubai Islamic Bank (DIB) became the world’s first bank to attain ISO 21001:2018 certification, an international
standard for organizations providing educational products and services capable of meeting the needs and
requirements of learners and other beneficiaries. The award is a well-earned recognition that reflects the
commitment and dedication of DIB's teams of the HR- Talent Management and Learning & Development units.
By becoming the first bank in the world to achieve an accredited EOMS certification, DIB has set an example
for the service industry of many other countries to follow.
DCM and Syndication Deals (Year to Date)
SUKUK
Amount Issued
Issuer / Obligor Name Issuer Type Profit Rate (%) Maturity
(USD mn)
Govt. of Pakistan Sovereign 7.950% 1,000 31-Jan-29
Dubai Islamic Bank Financial Institution 2.740% 750 16-Feb-27
Republic of Turkey Sovereign 7.250% 3,000 24-Feb-27
First Abu Dhabi Bank Financial Institution 2.591% 500 02-Mar-27
Govt. of Sharjah Sovereign 3.886% 750 04-Apr-30
7Islamic Development
Supranational 3.213% 1,600 28-Apr-27
Bank
4.400% 1,750 06-Jun-27
Republic of Indonesia
Sovereign
(Dual Tranche)
4.700% 1,500 06-Jun-32
Arada Development Corporate 8.125% 350 08-Jun-27
Private Department of
Skh Mohammad Bin Corporate 8.750% 300 23-Sep-25
Khalid Al Nahyan LLC
CLUB / SYNDICATED TRANSACTIONS
Total Deal Value
Obligor Type
Obligor Name (USD or USD Closing Date
/ Sector
eqv. In Mn)
Corporate /
Tecom Investments LLC 2,069 30-Mar-22
Real Estate
Corporate /
Abu Dhabi Oil Refining Company 1,000 31-May-22
Energy
ICD-Brookfield Management Ltd. Corporate/ 708 11-Aug-22
Real Estate
Year to Date Awards List
Date Award Giving Body Award Received
DIB Ranked 10th amongst the Middle East’s Top 30
August 2022 Forbes ME
Banks 2022
The Best Engagement in the Training & Emiratization
Emirates Institute for Banking and
July 2022 Award
Financial Studies (EIBFS)
Organization of the Year for Youth Empowerment in
GCC GOV Youth Empowerment Awards
June 2022 Banking and Finance
2022
DIB ranked amongst the Middle East’s Top 100
June 2022 Forbes ME
Listed Companies 2022
Kuwait Deal of the Year
Best Islamic Retail Bank
Best Islamic Bank - UAE
Sovereign & Multilateral Deal of the Year
Best Islamic Bank - DIB Kenya
May 2022 Islamic Finance News Awards
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
8Best Digital Innovation in Islamic Banking of the Year
MEA Finance Banking Technology
May 2022 Best Islamic FinTech Solutions Implementation –
Awards 2022
rabbit by Dubai Islamic Bank
DIB ranked 11th amongst Top 150 Arab banks in the
January 2022 Al Bayan Magazine
Middle East
About Dubai Islamic Bank:
Established in 1975, Dubai Islamic Bank is the largest Islamic bank in the UAE by assets and a public joint stock company
listed on the Dubai Financial Market. Spearheading the evolution of the global Islamic finance industry, DIB is also the world’s
first full service Islamic bank and the second largest Islamic bank in the world. With Group assets in excess of USD 80bln and
market capitalization of nearly USD 9bln, the group operates with a workforce of more than 10,000 employees and around 500
branches in its vast global network across the Middle East, Asia and Africa. Serving over 3 million customers across the Group,
DIB offers an increasing range of innovative Shariah compliant products and services to retail, corporate and institutional clients.
In addition to being the first and largest Islamic bank in the UAE, DIB has a significant international presence as a torchbearer
in promoting Shariah-compliant financial services across a number of markets worldwide. The bank has established DIB
Pakistan Limited, a wholly owned subsidiary which is the first Islamic bank in Pakistan to offer Priority & Platinum Banking, as
well as the most extensive and innovative portfolio of Alternate Distribution Channels. The launch of Panin Dubai Syariah Bank
in Indonesia early in 2017 marks DIB’s first foray in the Far East, the bank owns a nearly 25% stake in the Indonesian bank.
Additionally, in May 2017, Dubai Islamic Bank PJSC was given the license by the Central Bank of Kenya (CBK) to operate its
subsidiary, DIB Kenya Ltd. DIB has been designated as D-SIB (Domestic Systemically Important Bank) in 2018 in UAE. In
early 2020, DIB completed the acquisition of Noor Bank, which solidifies its position as a leading bank in the global Islamic
finance industry.
The Bank’s ultimate goal is to make Islamic finance the norm, rather than an alternative to conventional banking worldwide.
DIB has won a range of accolades that are testament to these efforts across diversified areas, including retail, corporate and
investment banking, as well as CSR and consultancy services. DIB has been named the Best Islamic Bank in various
prestigious ceremonies and recognized for its outstanding performance amongst the world’s Islamic Banks, marking it a clear
indication of the bank’s leadership position in the Islamic finance sector.
For more information, please visit us at www.dib.ae
Please follow us on DIB’s social channels:
https://www.facebook.com/dib.uae/
https://www.youtube.com/user/DubaiIslamicBank
https://twitter.com/DIBtoday
https://www.linkedin.com/company/dubai-islamic-bank
https://www.instagram.com/dubai_islamic_bank/
For more PR information, please contact:
Dubai Islamic Bank Weber Shandwick
Kashif Moosa Tameem Alkintar
Head of Investor Relations & Strategic Communication Account Director
Direct: +971.4.2075454 Direct: +971 56 149 1094
Email: kmoosa@dib.ae E mail: TAlkintar@webershandwick.com
Download the DIB Investor Relations (IR) App
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Sentiment: positive