Dubai Islamic Bank (DIB) delivered another strong performance in the first half of 2025, achieving a 16 per cent year‑on‑year rise in pre‑tax profit to Dh4.3 billion as operating revenue climbed to Dh6.4 billion.
The solid results, supported by double‑digit growth in financing and deposits and improved asset quality, helped the bank surpass the $100 billion mark in total assets for the first time in its history.
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Net profit for the six months ended June stood at Dh3.7 billion, a 10 per cent increase from a year earlier, as the bank benefited from improved cost of risk and declining impairment charges. Provisions fell sharply by 61 per cent year‑on‑year to Dh256 million, reflecting prudent underwriting and effective risk management practices.
The balance sheet expanded by 8 per cent year‑to‑date to Dh373 billion. Net financing assets rose 12 per cent to Dh237 billion, driven by healthy demand from both wholesale and retail segments. Growth in wholesale financing was broad‑based, with strong contributions from local and cross‑border business in key sectors such as sovereigns, utilities and aviation. On the retail side, consumer financing assets climbed 13 per cent to Dh71 billion, supported by robust demand across all product lines.
DIB’s sukuk portfolio increased by 9 per cent to Dh89 billion, comprising high‑quality and well‑rated sovereign and financial institution issuances. Customer deposits reached Dh284 billion, up 14 per cent since the start of the year, underpinned by strong customer acquisition and retention. Current and savings account (CASA) balances rose 8 per cent to Dh102 billion, making up 36 per cent of total deposits.
Asset quality improved notably, with the non‑performing financing ratio declining by 64 basis points to 3.36 per cent — the lowest in five years. The cash coverage ratio rose by 600 basis points to 103 per cent, while total coverage reached 145 per cent. Capitalisation remained strong, with a Common Equity Tier 1 ratio of 13.0 per cent and a capital adequacy ratio of 16.7 per cent, both comfortably above regulatory requirements. Liquidity was also healthy, with a liquidity coverage ratio of 128 per cent and a net stable funding ratio of 107 per cent.
The bank continued to leverage artificial intelligence to enhance efficiency, accuracy and inclusion across operations. AI initiatives have reduced model‑building time by 80 per cent, cut false positives in risk alerts by 30 per cent, and automated 10 per cent of back‑office processes. Retail acquisitions supported by AI‑driven targeting accounted for 35 per cent of total new retail business, while AI‑based credit scoring enabled outreach to over 100,000 previously underserved customers.
DIB also recorded Dh60 billion in new gross underwriting and sukuk investments in H1 2025, up 47 per cent year‑on‑year. Consumer banking contributed nearly Dh18 billion of this, a 46 per cent jump, while local and cross‑border corporate banking accounted for Dh31 billion, 78 per cent higher than a year earlier. The UAE customer base grew to more than 1.6 million, with 80 per cent of new clients onboarded digitally.
In line with the UAE’s goal to mobilise Dh1 trillion in sustainable finance by 2030, DIB financed Dh2.7 billion in new green and sustainable projects during the first half and facilitated nearly Dh14 billion in Islamic capital market issuances in the sustainability segment.
The year marks DIB’s 50th anniversary, underscoring its role as a pioneer in Shariah‑compliant banking since 1975. The bank also unveiled a refreshed corporate identity to reflect its vision centred on innovation, sustainability and purpose‑driven growth.
Mohammed Ibrahim Al Shaibani, chairman of DIB, said the results demonstrate the strength of the bank’s governance and long‑term commitment to value‑based banking. “Surpassing $100 billion in total assets is not only a measure of scale but a marker of adaptability and resilience.”
Group CEO Dr. Adnan Chilwan noted that the strong profitability, with a return on equity of 21 per cent, was achieved despite the introduction of corporate tax this year.
issacjohn@khaleejtimes.comis Managing Editor at media and has over 45 years of experience in top-tier newspapers across UAE. A seasoned business writer and economic analyst, he brings unmatched insight into the geopolitics and geoeconomics shaping the Gulf and India.
