DIB Strengthens H1 2026 Performance with 10% YoY Revenue Growth to AED 12.4 Billion and Improved Asset Quality

UAE – Dubai – Dubai Islamic Bank (DIB), the largest Islamic financial institution in the UAE, reported a robust performance for the first half of 2026, showcasing the resilience of its diversified business model. The bank achieved a gross revenue of AED 12.4 billion, marking a 10% year-on-year increase. This growth is attributed to sustained momentum in net financing assets, which rose by 7% year-to-date to AED 281 billion, alongside customer deposits reaching AED 327 billion.

Key Financial Metrics for H1 2026

DIB’s financial performance reflects strong operational efficiency and effective cost management. The pre-tax profit stood at AED 4.3 billion, with a pre-tax return on tangible equity of 20%. The bank’s asset quality also improved, with the non-performing financing (NPF) ratio decreasing to 2.4% and the cost of risk remaining low at 28 basis points.

Revenue and Profitability Insights

• Gross revenue increased by 10% YoY to AED 12.4 billion, driven by both funded and non-funded income streams.
• Operating profit rose by 6% YoY to AED 4.8 billion, supported by revenue growth and operational efficiency.
• Pre-tax profit reached AED 4.3 billion, with a stable pre-tax return on tangible equity close to 20%.

Balance Sheet Growth

• Net financing assets grew by 7% YTD to AED 281 billion, reflecting healthy demand across consumer and wholesale banking segments, with AED 43 billion in new gross financing during the period.
• Customer deposits increased by 2% YTD to AED 327 billion, bolstered by ongoing customer acquisition and growth in current and savings account (CASA) balances, which reached AED 112 billion.

Asset Quality Improvement

• The bank’s asset quality continued to strengthen, with the NPF ratio improving to 2.4%, down 30 basis points YTD.
• The cost of risk remained contained at 28 basis points, indicating the resilience and quality of the financing book.
• The cash coverage ratio stood at 122%, up 200 basis points YTD, while the total coverage ratio remained solid at 158%.

Capital and Liquidity Strength

• DIB maintained a robust capital position, with a Common Equity Tier 1 (CET1) ratio of 13.0% and a Capital Adequacy Ratio (CAR) of 16.1%, reflecting disciplined capital management.
• The bank’s liquidity ratios remained strong, with a liquidity coverage ratio (LCR) of 140% and a net stable funding ratio (NSFR) of 105%.

His Excellency Mohammed Ibrahim Al-Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of DIB, noted the challenging operating environment marked by geopolitical developments and shifting market dynamics. He emphasized the UAE’s resilience, supported by economic diversification and effective policy execution. He highlighted that DIB’s performance in the first half underscores the importance of sound governance and balance sheet strength.

Dr. Adnan Chilwan, Group Chief Executive Officer of DIB, stated that the bank’s strong performance reflects a focus on disciplined growth and a commitment to maintaining asset quality. He pointed out that the successful issuance of a USD 1 billion Additional Tier 1 Sukuk during this period further demonstrates investor confidence in DIB’s credit fundamentals.

Business and Strategic Highlights

Consumer Banking Growth

• The consumer banking portfolio expanded by 12% YTD to AED 86 billion, driven by broad-based demand across financing products.
• Personal finance volumes surged by 30% YoY, reinforcing DIB’s leading position in the UAE personal finance market.
• Consumer deposits reached AED 91 billion, up 5% YTD, with a healthy CASA mix of 44%.

Corporate Banking Growth

• Local and cross-border corporate financing assets reached AED 186 billion, increasing by over 5% YTD.
• Corporate deposits rose to AED 213 billion, supported by a diversified funding base, with CASA balances representing 26% of total corporate deposits.

Digital Banking Progress

• Digital banking registrations increased by 16% YoY, with 83% of new CASA customers onboarded through digital channels.
• Digital adoption remained strong, with 55% of customer transactions conducted through the DIB app.

Treasury Strength

• DIB successfully issued a USD 1 billion Additional Tier 1 Perpetual Non-Call 6-Year Sukuk, reflecting strong demand from Islamic investors.

Sustainability Initiatives

• DIB originated AED 3.1 billion in sustainable finance and AED 2.1 billion in sustainability-linked finance YTD.
• The launch of the Green Concierge platform aims to support clients in advancing their sustainability agendas.

Financial Review: Income Statement

DIB’s income statement for H1 2026 reveals a solid performance:

• Gross funded income increased by 10% YoY to AED 10.2 billion.
• Non-funded income rose by 7% YoY to AED 2.2 billion.
• The net profit margin stood at 2.4%, reflecting a moderation of 30 basis points YoY.

Financial Review: Balance Sheet

DIB’s balance sheet continued to expand, with total assets increasing by 2% YTD to AED 423 billion. Key figures include:

• Net financing and sukuk investments at AED 366.2 billion.
• Customer deposits at AED 327 billion.

DIB’s commitment to maintaining a strong balance sheet and effective risk management positions it well for future growth.

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Published on 2026-07-14 20:11:00 • By the Editorial Desk