Today's Edition
BATOOL GHAITH (ABU DHABI)
Dubai Islamic Bank (DIB) said it was on track to meet all targets according to the bank’s full-year 2026 guidance, after it delivered strong first quarter results.
The bank reported growth across financing, revenues and deposits, underscoring what it described as a resilient operating environment, disciplined execution and continued customer confidence despite ongoing regional uncertainty.
DIB’s net financing assets and Sukuk investments grew 3% year-to-date to Dh364 billion in Q1 2026, supported by expansion across key business lines and continued balance sheet momentum. Total assets reached Dh420 billion during the quarter.
Net financing assets increased 22% year-on-year to Dh271 billion, driven by more than Dh24 billion in gross new financing during the quarter, while Sukuk investments rose 11% year-on-year to Dh93 billion following over Dh5 billion in new Sukuk investments.
Operating revenue rose 13% year-on-year to Dh3.5 billion in Q1, while operating profit increased 12% to Dh2.5 billion, supported by operational efficiency and disciplined cost management.
“Overall, the quarter reflects disciplined growth, resilient profitability, a strong balance sheet, underpinned by improving asset quality, robust capital buffers, and balanced liquidity,” said Adnan Chilwan, Group Chief Executive Officer of Dubai Islamic Bank.
Operating performance remained strong across both funded and non-funded income streams. Net funded income rose 5% year-on-year to Dh2.3 billion, while non-funded income jumped 30% to Dh1.249 billion.
The bank maintained a cost-to-income ratio of 28.2% in Q1 2026, reflecting continued cost discipline despite ongoing investments in technology, infrastructure and digital capabilities.
DIB recorded net profit before tax of Dh2.126 billion during the quarter, up 1% year-on-year, while return on tangible equity before tax stood at 21%.
Asset quality improved further, with the non-performing financing ratio declining to 2.5% from 2.7% at the end of 2025. Capital and liquidity positions also strengthened, with the CET1 ratio at 12.6% and capital adequacy ratio at 15.8%.
Liquidity coverage ratio stood at 121% and NSFR at 106%, both above regulatory requirements.
Within consumer banking, the financing portfolio grew 6% year-to-date to Dh83 billion, supported by around Dh11 billion in gross new financing. The bank added more than 77,000 new customers in Q1 2026, taking its UAE customer base to 1.7 million.
The bank also reported progress in digital banking, with digital registered users increasing 16% year-on-year to about 1.77 million. Around 98% of customers now use digital channels, while more than 97% of transactions are processed digitally.
In sustainability, DIB said its total sustainable finance portfolio exceeded Dh19.5 billion, marking more than 100% year-on-year growth as it expanded its role in sustainable Sukuk and ESG-linked financing.
