Dubai Islamic Bank (DIB) Q2 2025 earnings summary

Executive summary

• Achieved record gross new underwriting of $60 billion (over AED 60 Bn) in H1 2025, with 18% year-on-year credit growth and 21% growth in liabilities.

• Pre-tax profits rose 16% year-on-year to $4.3 billion (AED 4.3 Bn), driven by core business, higher non-funded income, and lower credit costs.

• Balance sheet surpassed $100 billion (AED 373 Bn) for the first time, marking a historic milestone.

• Customer deposits grew 14% year-to-date to AED 284 Bn, ensuring ample liquidity.

• Asset quality improved, with NPF ratio down to 3.36% and cash coverage above 100%.

Financial highlights

• Operating revenue increased 5% year-on-year to $6.4 billion (AED 6.37 Bn) in H1 2025; non-funded income up 16% year-on-year.

• Net profit after tax grew 10% year-on-year to AED 3.73 Bn.

• Expenses rose 7% to $1.8 billion (AED 1.8 Bn), mainly due to technology and digital transformation investments.

• Cost-to-income ratio remained low at 28%.

• Impairment charges declined 61% year-on-year, reflecting improved asset quality.

Outlook and guidance

• Loan growth guidance of 15% for 2025 now expected to be achieved by Q3, ahead of schedule.

• Net profit margin guidance for 2025 is 2.8–3%, with H1 at 2.7%; improvement expected if rates fall in H2.

• Cost-to-income ratio guidance maintained at 26–28%.

• Return on tangible equity and assets in line with guidance at 21% and 2.4%, respectively.

• Normalized cost of risk expected at 50–60 basis points for 2025, with H1 at 16 basis points due to strong recoveries.