tal,
ju.J
Dubai Islamic Bank
L_`1i,.
#ReadyForTheNew vitt, " g 3seluio#
Press Release:
Dubai Islamic Bank 3rd Quarter 2023 Group Financial Results
o Robust rise in total income by 47% YoY to AED 14.5 billion.
o Net profit of AED 4.8 billion, strong growth of 18% YoY.
o Balance sheet crossing a new milestone reaching AED 313 billion, up 9% YTD.
o Asset quality improves to 6.0% down 50 bps YTD, beating guidance.
o Continued improvement in RoTE registering 18.4%, up 140 bps YTD.
Dubai, October 31, 2023
Dubai Islamic Bank (DFM: DIB), the largest Islamic bank in the UAE, today announced its results for the period
ending September 30, 2023.
9M 2023 Highlights:
• Group Net Profit came in at AED 4,823 million, up 17.6% YoY compared to AED 4,101 million. Growth was
driven by rising core revenues, non-funded income and lower impairment charges.
• Net financing and sukuk investments at AED 265 billion, up 11.3% YTD. Gross new underwriting and sukuk
investments during 9M 2023 reached AED 72 billion vs AED 43 billion in 9M 2022.
• Total income reached to AED 14,548 million compared to AED 9,873 million, a solid expansion of 47.4% YoY.
• Net Operating Revenues showed a robust increase of 11.7% YoY to reach AED 8,547 million.
• Net Operating Profit now at AED 6,286 million, a 12% YoY increase compared to AED 5,612 million in 9M
2022.
• Balance sheet expanded strongly by 8.7% YTD to cross to AED 313 billion.
• Customer deposits increased to AED 221 billion, up 11.2% YTD with CASA comprising 37% of DIB’s deposit
base. Traction towards investment deposits has continued increasing their contribution to total deposits to 63%
from 56% in YE 2022.
• Impairment charges registered AED 1,409 million against AED 1,450 million in 9M 2022, down by 3.0%.
Similarly, 3Q 2023 impairments are also down by 10.5% YoY and 2.7% QoQ.
• NPF improved to 6.04% compared to 6.46% in FY2022, lower by 42 bps YTD and 31 bps QoQ.
• Cost to income ratio further improved to 26.5%, down 20 bps YoY and stable QoQ.
• Liquidity remains healthy with LCR at 166%.
• Continued improvement on ROA now at 2.2% (+20 bps YTD) and ROTE at 18.4% (+140 bps YTD).
• Capitalization levels remain robust with CET1 at 13.6% (+70bps YTD) and CAR at 18.1% (+50bps YTD),
both well above the minimum regulatory requirement. Total equity now stands at AED 46 billion.
Dubai Islamic Bank PJSC | PO Box 1080, Dubai, United Arab Emirates | https://www.dib.ae/irk
T
1 ,4
,,DILLUVI t. JUJ 1Z -Lb.
t Dubai Islamic Bank
#ReadyForTheNew
Management’s comments for the period ending 30th September 2023:
• The UAE economy continues to thrive with strong fundamentals amidst
the volatile global economic environment. The recent IMF growth
figures on the UAE demonstrate the country’s resilience and the
confidence that business and investors have on the economy.
• The domestic banking sector remains solid with expanding balance
sheets and improving asset quality and profitability. DIB’s 9M 2023
performance has been remarkable generating more than AED 14.5
_It; billion in total income, a stellar growth of 47% YoY.
His Excellency Mohammed • With the approaching COP28 here in Dubai, DIB has been progressing
Ibrahim Al Shaibani on its climate ambitions with strong partnerships and pledges which
will pave the way for DIB to unlock further opportunities within the ESG
Director-General of His space in line with the country’s sustainability goals. We look forward
Highness The Ruler’s to welcoming the international leaders, policy makers and delegates
Court of Dubai and and DIB remains committed to this important event in helping to
Chairman of Dubai Islamic
deliver climate solutions.
Bank
• Dubai’ economy remained focused on the acceleration of all national
projects under its Economic Agenda, D33, reflected in its 1H 2023 GDP
growth of 3.2% YoY and further lifted by exceptional performance
during 2Q 2023 alone of 3.6%. Remarkable growth across all sectors
including transportation, retail trade, tourism, real estate and
manufacturing led to this positive performance.
• DIB’s profitability during the nine months surged with net profit
reaching AED 4.8 billion, up 18% YoY, supported by higher revenues,
controlled costs and lower impairments.
• DIB’s gross new financing and sukuk underwriting has been
monumental during the reporting period reaching AED 72 billion, up
Dr. Adnan Chilwan 69% YoY fueled by all business segments, particularly the corporate
accounts, underpinning the bank’s robust growth strategy.
Group Chief Executive
Officer • Accordingly, the bank’s balance sheet crossed the AED 300 billion mark
for the first time, reaching AED 313 billion a rise of 9% YTD. The
financing book grew by 7% YTD to AED 199 billion (+5% QoQ) across
corporate and consumer businesses reinforced by a surge in corporate
cross border and private sector financing. Including Sukuk, the bank’s
financing and sukuk assets has grown 11.3%, already surpassing full
year guidance.
2• Our commitment to sustainability remains a top agenda for DIB with
various bank-wide strategic initiatives aligned on this important
theme. Our recently launched ‘One Tree for Everyone’, on-going
collaboration with the COP28 team and regulators and our fast
growing sustainable finance portfolio will help drive economic and
social growth in the country.
• ESG and sustainability are fully embedded in the bank’s growth plans
which revolve around positive impact on the environment and well
being of the people in line with UAE’s agenda for a brighter, greener
future.
3Financial Review:
Income statement summary
AED millions Sep 2023 Sep 2022 YoY % change
Total Income 14,548 9,873 47%
Depositors’/ Sukuk holders share of profit (6,001) (2,220) 170%
Net Operating revenue 8,547 7,653 12%
Operating expenses (2,262) (2,040) 11%
Profit before impairment losses & income tax 6,286 5,612 12%
Impairment losses (1,409) (1,450) (3%)
Income tax (54) (61) (13%)
Net profit for the period 4,823 4,101 18%
Key Ratios (%) Sep 2023 Sep 2022 Change (bps)
Net Profit Margin % 3.1% 2.9% 20 bps
Cost to income ratio % 26.5% 26.7% (20 bps)
Return on average assets % 2.2% 2.0% 20 bps
Return on tangible equity % 18.4% 16.8% 160 bps
Balance Sheet Summary
AED millions Sep 2023 Dec 2022 YTD % change
Net Financing and Sukuk Investments 265,253 238,271 11%
Equities & Properties Investments 9,135 9,724 (6%)
Other Assets 8,762 9,148 (4%)
Due from banks and financial institutions 3,079 4,607 (33%)
Cash & CB Balances 27,151 26,489 3%
Total assets 313,380 288,238 9%
Customers’ deposits 220,917 198,637 11%
Sukuk financing instruments 20,482 22,340 (8%)
Other liabilities 25,972 23,286 12%
Total liabilities 267,371 244,263 10%
Shareholder Equity & Reserve 34,948 33,040 6%
Tier 1 Sukuk 8,264 8,264 0%
Non-Controlling interest 2,797 2,671 5%
Total liabilities and equity 313,380 288,238 9%
Key Ratios (%) Sep 2023 Dec 2022 Change (bps)
Liquidity Coverage Ratio (LCR) 166% 150% 1600 bps
CET 1 13.6% 12.9% 70 bps
Capital Adequacy Ratio (CAR) 18.1% 17.6% 50 bps
Non-Performing Financing (NPF) 6.04% 6.46% (42 bps)
Coverage 84% 78% 600 bps
4Operating Performance
The bank’s Total Income rose to AED 14,548 million in 9M 2023 demonstrating a notable YoY growth of 47%
compared to AED 9,873 million primarily driven by strong income from financing assets and non-funded income.
Non-funded income advanced by 15% YoY over the reporting period supported by fees & commissions and income
from investment properties in line with Dubai’s strong property rental market. Particularly 3Q 2023 non funded
income exhibited a strong quarter YoY up by 49% as commissions rose by 17% due to higher financing processing
fees and rental income. This is clearly reflected in the Net Operating Revenue which grew by 12% YoY to reach
to AED 8,547 million compared to AED 7,653 million last year.
Pre-impairment profit increased by 12% YoY reaching to AED 6,286 million compared to AED 5,612 million.
Impairment charges stood at AED 1,409 million down by 3% YoY. Additionally, 3Q 2023 charges exhibited a
declining trend both YoY and QoQ by 10% and 3% respectively.
Operating expenses amounted to AED 2,262 million during 9M 2023 vs AED 2,040 million in 9M 2022, exhibiting
11% YoY increase. Cost income ratio improved to 26.5%, down 20 bps YoY.
Group Net Profit witnessed a robust increase of 18% YoY to reach AED 4,823 million vs AED 4,101 million in 9M
2022. 3Q 2023 net profit registered AED 1,713 million up 6.7% QoQ and 22% YoY.
Net profit margin increased to 3.1% (+10bps YoY) with ROA and ROTE at a healthy 2.2% and 18.3% up by 20
bps and 130 bps YTD respectively.
Balance Sheet Trends
Net financing & Sukuk investments stood at AED 265 billion, up 11.3% YTD from AED 238 billion in FY 2022.
DIB’s net financing assets were up by 7% YTD while the Sukuk investments portfolio, another key focus of the
bank, expanded by nearly 27% YTD (+8% QoQ) to reach to AED 66 billion.
DIB witnessed stellar overall YoY growth in gross new financing and sukuk during 9M 2023 amounting to nearly
AED 72 billion, up 69% compared to AED 43 billion in 9M 2022. The bank’s sukuk portfolio continued its resilience
witnessing gross new investment of AED 19 billion doubling YoY compared to 9M 2022 eventually leading to net
growth of AED14 billion. Separately, gross corporate financing origination surpassed AED 37 billion, (+ 85% YoY),
driven mainly by large corporates and regional cross border financing, while new bookings from consumer
financing followed suit up 21% to AED 16 billion driven by automotive and personal finance, underpinning DIB’s
strong franchise despite a competitive market. Routine repayments for the period continued to flow in at AED 18
billion and AED 13 billion from the corporate and consumer segments respectively. The momentum of early
settlements has retracted over the period by 23% YoY to AED 10 billion compared to AED 13 billion last year. This
5has resulted in net positive financing incremental growth of AED 13 billion in DIB’s portfolio over the 9M 2023
period compared to balanced growth last year. On a YoY basis, 3Q 2023 gross new underwriting grew five folds,
coupled with significantly lower early settlements compared to the same quarter last year, resulting in a positive
net growth of AED 9.5 billion.
Customer deposits stood at AED 221 billion as of 9M 2023 up by 11.2% YTD equally supported by the consumer
and corporate accounts. CASA now stands at AED 82 billion, comprising 37% of deposits. Migration to wakala
deposits continued during the period due to the current global rate scenario. This is reflected through an increase
in the wakala structure (investment deposits) which is up 24% YTD. Liquidity coverage ratio (LCR) at 166%, up
from 150% FY 2022, remains above regulatory requirement, depicting strong liquidity position.
Non-performing financing (NPF) ratio improved to 6.04%, down 42 bps compared YE 2022. Recoveries from NMC
and NOOR POCI are ongoing which resulted in a decline of 11% in their NPF exposure. Accordingly, NMC’s
coverage ratio increased by 600 bps YTD to 80% and by 1100 bps to 39% for the NOOR POCI account. Finally,
core DIB NPF account witnessed a slight 1.2% uptick on a YTD basis (flat QoQ) to AED 10.9 billion well covered
at 87% (up +400 bps YTD).
Stage 2 financing increased by 18% YTD to AED 18 billion, flat QoQ due to normal flow between stages. Stage 2
coverage ratio improved to 7.4% recovering to YE levels and also 70 bps up QoQ. On the other hand, Stage 3
coverage accordingly improved to 65.4%, (+420 bps) from FY2022 on the back of intensive efforts on recoveries.
Cash coverage ratio improved to 83% (+600 bps YTD, +800 bps vs 9M 2022) and overall coverage including
collateral at 117% (+700 bps YTD and 1,200 bps vs 9M 2022). Cost of risk on gross financing assets stood at 71
bps compared to 84 bps for the year 2022, an improvement of 13 bps YTD.
Capital ratios continue to remain strong with CAR now at 18.1% (up 50 bps YTD) and CET 1 ratio at 13.6% (up
70 bps YTD), both well above the regulatory requirement.
Business Performance (9M 2023)
Consumer Banking portfolio stood at AED 54 billion up 4% from AED 52 billion in FY2022. The portfolio’s total new
underwriting of AED 16 billion during the period increased from AED 13 billion in 9M2022, up 21% YoY. In this, all
consumer segments witnessed strong growth particularly auto finance which featured a 34% jump YoY and
Personal Finance up 20% YoY in gross new underwriting. Despite routine repayments of AED 13 billion, the
portfolio grew by AED 3 billion over the 9M 2023 period. The business generated AED 3.7 billion in revenues
during the year up a hefty 24% YoY from AED 3 billion during 9M 2022. Blended yield on consumer financing grew
6by 85 bps YoY to reach to 6.7%. Separately, on the funding side, consumer deposits witnessed an 11% increase
YTD to AED 87 billion as investment deposits gained traction from customers while consumer CASA remained
steady YTD at AED 48 billion.
Corporate banking portfolio now stands at AED 145 billion up 8.2% YTD driven by growth in the services,
automobile and financial institution sectors. Gross new corporate financing for 9M 2023 bolstered to AED 37 billion
up 85% YoY, while repayments and early settlements registered AED 27 billion, leading to AED 10 billion growth
in the portfolio over the 9M 2023 period. This growth features a robust recovery in the corporate portfolio as the
bank’s strong liquidity position enabled it to deploy financing strategically, coupled with a drop in early settlement.
Revenues featured double digit growth reaching AED 3.4 billion, up 29% YoY compared to AED 2.7 billion in 9M
2022. Yield on corporate financing portfolio expanded by 300 bps YoY to 6.38% compared to 3.39%. Separately
on the funding side, corporate deposits increased by 10% YTD while CASA was impacted by 8% YTD as large
corporates continued to rotate their funds into higher yielding deposits.
Treasury continued to provide strong impetus to growth as the custodian of the bank’s fixed income book. The
sukuk investment portfolio now stands at AED 66 billion, up 26.8% YTD, constituting a significant 21% of the
bank’s assets. Gross new sukuk investments during the 9M 2023 amounted to AED 19 billion doubling YoY,
leading to net growth of AED 14 billion for the period. The portfolio carries an attractive yield of 4.61% up 65 bps
YoY.
Key Business Highlights (Q3 2023)
• DIB will acquire 20% shareholding across Turkey’s T.O.M. Group becoming a significant minority
shareholder in T.O.M. Group which includes T.O.M. Katılım Bankası A.Ş. (Türkiye's First Licensed Digital
Retail Bank), T.O.M. Pay Elektronik Para ve Ödeme Hizmetleri A.Ş. (Licensed e-money company with a fast-
growing customer base in Türkiye), and T.O.M. Finansman A.Ş. (Licensed financing company specialized in
developing innovative digital products) and their subsidiaries. DIB’s entry strategy revolves around the
acquisition of a significant minority stake into the T.O.M. Group which is an integrated, comprehensive financial
services group established in the digital space. DIB has an option to increase shareholding to 25% within 12
months.
• One Tree for Everyone. DIB has announced that it will plant one tree for every new customer who opens a
DIB account. This initiative aligns to DIB’s position of being a key player in the sustainability space and to the
UAE’s Net Zero agenda. Overall it is also DIB’s pledge to make the country greener and healthier in order to
reduce UAE’s environmental footprint, while driving economic, social and sustainable opportunities that
climate action creates.
7DCM and Syndication Deals (2023 YTD)
SUKUK
Issuer Type Profit Rate (%) Amount Issued Maturity
Issuer / Obligor Name
(USD mn)
First Abu Dhabi Bank Financial Institution 4.581% 500 17-Jan-28
Dubai Islamic Bank Financial Institution 4.800% 1,000 16-Aug-28
Air Lease Corp Corporate 5.850% 600 01-Apr-28
Damac Properties Corporate 7.750% 400 27-Apr-26
Aldar Investment Properties Corporate 4.875% 500 24-May-30
Majid Al Futtaim Corporate 5.000% 500 01-Jun-33
Sobha Realty Corporate 8.750% 300 17-Jul-28
Almarai Corporate 5.230% 750 25-Jul-33
DP World Corporate 5.500% 1,500 13-Sep-33
Gov of Sharjah Corporate 6.092% 750 19-Mar-34
Energy Development Oman Corporate 5.875% 1,000 21-Sep-33
IsDB Supra National 4.906% 1,750 3-Oct-28
CLUB / SYNDICATED TRANSACTIONS
Total Deal Value
Obligor Name Obligor Type / Sector (USD or USD Closing Date
eqv. In Mn)
Tecom Investments LLC Corporate / Real Estate
2,071 Jun 2023
DP World Logistics
3,000 Jan 2023
Merex Investment Real Estate
463 Jun 2023
Dubai Asset Management Real Estate
545 May 2023
Telecommunication Towers Company Telecom
1,120 Aug 2023
Lulu Consumer Goods
2,724 Aug 2023
Air Structured Holding Company Aviation
1,100 Sept 2023
8Awards List (2023 YTD)
Date Award Giving Body Award Received
• Ranked 22nd amongst the Middle East’s Top 100
Listed Companies
June 2023 Forbes ME
• Ranked 10th amongst the UAE’s top 10 listed
companies
Euromoney Awards for Excellence • Best Islamic Bank in the Middle East
June 2023
2023 • Best Islamic Bank in the UAE
• Best Innovation in User Experience
MEA Finance Banking Technology • Best Analytics System (Dubai Islamic Bank and GBM)
May 2023
Awards 2023 • Best Corporate Payments Service
• DIB Ranked 13th amongst the Middle East’s 50 Most
April 2023 Forbes ME
Valuable Banks 2023
April 2023 Achievement Awards 2022 • Best financial institution Sukuk
• Most Innovative Islamic Bank
• Best Overall Islamic Bank in UAE
• Best Corporate Bank in UAE
• Best Overall Islamic Bank in Kenya
• Best Investment Bank in Kenya
• Best Corporate Bank in Kenya
March 2023 Islamic Finance News Awards • Most Innovative Bank in Kenya
• Syndicated Deal of the Year
• Turkey Deal of the Year
• Corporate Finance Deal of the Year
• Pakistan Deal of the Year
• Best Overall Islamic Bank
• Best Sovereign Bond & Best Green Sukuk of the year
February 16th Annual Best Deal & Solution
2022
2023 Awards 2022
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
9subsidiary, 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
10

Sentiment: positive