Dubai Islamic Bank (DIB) Q4 2024 earnings summary

Executive summary

• Achieved record financial performance in 2024, with total income up 16% to AED 23.3 billion, pre-tax profit up 27% to AED 9 billion, and net profit up 16% to AED 8.2 billion, driven by robust growth across core business and balance sheet.

• Balance sheet expanded nearly 10% year-on-year to AED 345 billion, with net financing and sukuk investments reaching AED 295 billion, up 10% year-on-year.

• Customer deposits increased 12% year-on-year to AED 249 billion, with CASA deposits comprising over 38% of the total.

• Asset quality improved significantly, with the non-performing financing ratio dropping to 4%, down 140 bps year-on-year, and total coverage at 138%.

• Accelerated digital transformation and sustainability initiatives, including a USD 1 billion Sustainable Sukuk, net-zero operations target by 2030, and enhanced stake in a digital bank in Türkiye.

Financial highlights

• Net operating revenue rose 10% year-on-year to AED 12.8 billion; impairment charges dropped 71% to AED 407 million.

• Cost-to-income ratio improved to 26.7%; net profit margin at 3.0%.

• Operating expenses increased 8% year-on-year to AED 3.4 billion, reflecting ongoing investments in technology.

• Group net profit (post-tax) reached AED 8.2 billion, up 16.5% year-on-year.

• Pre-tax ROA at 2.8% (+50 bps YoY), pre-tax ROTE at 24% (+400 bps YoY), post-tax ROA at 2.5%, and post-tax ROTE at 22%.

Outlook and guidance

• 2025 guidance targets 15% growth in loan and sukuk portfolios, with non-performing financing ratio expected to improve to 3.5%.

• Return on assets projected at 2.4%, net profit margin to remain at 3%, and cost-to-income ratio at 26%.

• Total coverage ratio expected to reach 140%, with cash coverage anticipated above 100%.

• Loan growth to be broad-based across consumer, corporate, cross-border, and fixed income businesses.

• Return on tangible equity expected at 21%.