Dubai Islamic Bank (DIB) Q3 2025 earnings summary

Executive summary

• UAE's economic growth is robust, led by non-oil sectors, with 2025 GDP expected to grow 4.9% and Dubai showing resilience in property, trade, and tourism.

• Surpassed full-year guidance with over AED 90 billion in new gross financing and AED 53 billion increase in deposits, supported by strong digital adoption and improved asset quality.

• Net profit for the nine months ended 30 September 2025 reached AED 5.68 billion, up from AED 5.45 billion year-over-year.

• The banking sector remains strong, with DIB reporting 14% asset growth and 10% pre-tax profit growth year-to-date, supported by diversified business lines.

• Digital transformation advanced, with 97% of transactions processed digitally and 33% YoY growth in digital users.

Financial highlights

• Total assets grew 14% year-to-date to AED 393 billion, with customer deposits up 21% to AED 302 billion.

• Total revenue increased 6% year-on-year to AED 9.7 billion for the first nine months, with non-funded income up 14%.

• Net profit before tax reached AED 6.6 billion, up 10% year-on-year, with ROTE (pre-tax) at 22% and ROA (pre-tax) at 2.4%.

• Net impairment charges declined 45% year-on-year to AED 292 million, reflecting improved asset quality.

• Operating profit rose 6% year-on-year to AED 6.9 billion, despite a moderate rise in the cost-to-income ratio to 28.7%.

Outlook and guidance

• Full-year guidance for net financing and sukuk growth revised upward to 20%, surpassing the previous 15% target.

• Net profit margin expected to close at 2.7%-2.8% for 2025, with similar levels targeted for 2026.

• Effective tax rate for 2025 is 14.1%-15%, with efforts underway to reduce it to 9% in 2026.

• NPF ratio expected to remain below 3.5%, with continued focus on asset quality and coverage.

• From 2026, a counter-cyclical buffer of 0.5% on private sector credit exposures in the UAE will be required.