Dubai Islamic Bank showcases an exceptional First Quarter 2025 Performance, Reaffirming its Position as the Global Leader in Islamic Finance

The first three months saw the bank deliver double-digit pretax earnings growth, significant asset quality improvement, and industry-first sustainability milestones

• Operating Revenue of AED 3.2 billion, growth of 5% YoY.
• Pre-tax Profit of AED 2.1 billion, solid growth of 14% YoY.
• Balance sheet expanded by 3% YTD to AED 355 billion.
• Net Financing portfolio grew by 5% YTD to AED 223 billion.
• Robust deposit growth of 7%, YTD now at AED 265 billion.

Dubai Islamic Bank (DFM: DIB), the world’s first full-service Sharia-compliant bank and the largest Islamic bank in the UAE, announced its results for the financial year ending March 31, 2025.

The Bank recorded a powerful start to the year, delivering AED 2.1 billion in group pre-tax profit – a 14% year-on-year increase – driven primarily by quality earning assets growth. Further, robust deposit mobilisation, led to the balance sheet expanding by 3% to AED 355 billion, reaffirming DIB’s strategic resilience and underscoring its growing influence in shaping the future of Islamic finance on the global stage.

Q1 2025 Highlights:

• Operating Revenues showed a healthy increase of 5% YoY to reach AED 3,154 million.
• Group Pre-Tax Profit reported at AED 2,108 million up 14% YoY, with Net Profit (post-tax) of AED 1,797 million, up by 8% YoY.
• Net Financing and Sukuk Investments increased to AED 307 billion, up 4% YTD. Strong Net Financing growth at nearly 5% YTD to reach to AED 223 billion.
• Total Assets now at AED 355 billion, up by 3% YTD.
• Customer Deposits increased to AED 265 billion, up by more than 7% YTD.
• CASA balances up by 4% YTD to reach AED 99 billion. CASA comprises 37% of the bank’s total deposits.
• Impairment charges low at AED 163 million, significantly declining further by 45% YoY.
• NPF Ratio continues to improve, reduced by 30 bps to 3.7% (vs 4.0% in Q4 2024).
• Cash Coverage and Total Coverage continue to improve, now at 98% and 139% respectively.
• Cost-to-Income Ratio lower by 30 bps YoY to 28.0%.
• Pre-tax RoA and RoTE at 2.5% and 22% respectively higher YoY by 20 bps and 160 bps.
• Post-tax ROA of 2.1% and RoTE of 18% respectively.
• Healthy capital ratios with CET1 Ratio at 13.4% and CAR at 17.3%, well above the regulatory minimum.

Management’s comments for the period ending 31st March 2025:

His Excellency Mohammed Ibrahim Al Shaibani, Director-General of His Highness The Ruler’s Court of Dubai and Chairman of Dubai Islamic Bank

• The global economy and financial markets have remained under pressure since the start of the year, driven by continued shifts in trade and immigration policy across major developed economies particularly the United States. With this backdrop, global growth is expected to stay moderate, and inflationary trends remain present in select advanced and emerging markets. Despite these global conditions, the UAE continues to stand out. Its expanding non-oil economy, deep trade partnerships and steady domestic growth have allowed it to maintain stability and move forward with confidence.
• The UAE banking sector recorded strong growth of 12% in 2024, driven through higher financing activity across public and private sectors. At Dubai Islamic Bank our results for the first quarter are a clear reflection of our commitment to this national progress — supporting key sectors, driving financial inclusion, and sustaining disciplined growth.
• Dubai’s economy continues to gain momentum, particularly in areas such as financial services, real estate, tourism and construction. These are sectors where DIB remains active and invested. As the world’s first full-service Sharia-compliant bank, we are proud to play a defining role in this transformation — both at home and across the wider Islamic banking landscape.

Dr. Adnan Chilwan, Group Chief Executive Officer

• The global environment remains uncertain, shaped by ongoing volatility in trade, regulation, and investor sentiment. Yet, while many economies continue to adjust, the UAE moves forward on its robust ambitions, guided by long-term reforms, expanding sectoral strength, and a clear economic vision.
• At Dubai Islamic Bank, our first-quarter performance reflects this direction. The balance sheet grew to AED 355 billion, up by more than 3% year to date, supported by deposits growth of nearly 7% as we continue to deliver balanced, quality-driven expansion across our retail and wholesale segments.
• There has been consistent improvement in our asset quality over the recent years. Our Non-Performing Financing (NPF) ratio dropped to its lowest levels since the global pandemic, now standing at 3.7% (lower 30 bps YTD). This clearly demonstrates the robust risk management approach and prudent underwriting guidelines that we have ingrained into our medium- and long-term business growth strategy.
• The bank’s profitability remained strong with pre-tax profit exceeding the AED 2 billion mark, growing nearly 14% year-on-year, whilst post-tax profit rose to AED 1.8 billion, a solid growth of 8% year-on-year, despite the introduction of the enhanced corporate tax. Our returns continue to reflect the strength of our business model, with pre-tax RoTE at 22% (+160 bps YoY) and RoA at 2.5% (+20 bps YoY). DIB continues to position itself as a consistent value creator, across all cycles.
• But for us performance alone does not define leadership. Our real focus lies in building an institution that is financially strong, values-driven, and future-ready. A core part of that journey is our sustainability agenda — one that is embedded in our long-term strategy, not just an add-on. In the first quarter, we launched our Sustainability-Linked Finance Facilities Framework — the first of its kind by any Islamic bank globally — alongside the continued expansion of our sustainable finance platform.

Financial Review

Income statement summary

Balance Sheet Summary

Operating Performance

• Net Operating Revenue grew by 5.2% YoY to AED 3,154 million supported by non-funded income which grew by 13% YoY. Net profit margin at 2.9% lower by 10 bps YoY, but within the guidance range.
• Operating expenses amounted to AED 883 million during the first quarter rising by 4% YoY. Cost-to-Income ratio, registered 28.0%, lower by 30 bps YoY.
• Pre-impairment profit increased by 5.7% YoY to AED 2,271 million compared to AED 2,149 million in Q1 2024.
• Impairment charges continue to decline at AED 163 million significantly lower by 45.4% YoY on the back of an improving asset quality. Cost of risk continue to be low at 20 bps for Q1 ’25.
• Pre-tax profit grew by 13.9% YoY to reach AED 2,108 million. Group Net Profit increased by 8.0% YoY to reach AED 1,797 million vs AED 1,664 million in same period of previous year.
• Returns continue to trend higher compared to previous year with Pre-tax ROA and ROTE standing at 2.5% and 22% respectively. Post tax ROA fell to 2.1% (lower 40 bps YoY) while post-tax ROTE remained stable YoY to 18% impacted by higher tax rates in 2025.

Balance Sheet Trends

• The bank’s New Gross Underwriting and Sukuk Investments during quarter amounted to more than AED 26 billion, a strong growth of 26% YoY compared to AED 21 billion in Q1 ‘24. Both retail and corporate businesses continue to demonstrate growth at 47% and 72% YoY, respectively in terms of new gross underwriting.
• Despite higher repayments during the first quarter, early settlements significantly declined by more than 60% compared to Q1 ’24 resulting in strong net movement.
• Net Financing & Sukuk Investments grew to AED 307 billion, up by 4% YTD from AED 295 billion in FY ‘24. Business growth was driven by Net Financing growth of 5% YTD to AED 223 billion and Sukuk Investment of 2% YTD to AED 84 billion.
• Overall asset base of the bank continued its healthy expansion with 3% YTD growth to AED 355 billion.
• Customer deposits grew 7% to AED 265 billion with CASA balances witnessing growth of 4% YTD to AED 99 billion. CASA now comprises 37% of Total Deposits. Investment deposits witnessed a growth of 8% YTD.
• Regulatory liquidity ratios remain healthy with LCR at 133% and NSFR at 105%.
• Non-Performing Financing (NPF) Ratio significantly improved to 3.7%, lower by 30 bps YTD and 127 bps YoY. The NPF amount declined further by AED 470 million to AED 8.7 billion, depicting continued improvement in asset quality.
• Cash Coverage Ratio improved to 98% and overall coverage including collateral increased to 139%.
• Capital ratios remain healthy strong with CAR at 17.3% and CET 1 ratio at 13.4%, both well above the regulatory requirement.

Business Highlights (Q1 2025)

• The bank continued to demonstrate strong growth momentum during the first quarter.
• Consumer Banking portfolio grew by more than 9% YTD to AED 68 billion. The portfolio’s total gross new underwriting in Q1 ‘25 was more than AED 9 billion, 47% higher compared to Q1 ‘24. All consumer assets witnessed healthy growth driven primarily by auto financing which saw 7% YTD increase in its portfolio, supported by auto financing campaigns. Consumer banking demonstrated higher revenue growth of 11% YoY driven by strong performance in fees & commission.
• Local & Cross Border Corporate banking portfolio grew to AED 155 billion up 4% YTD. Sectors such as utilities, manufacturing and financial institutions were key drivers of the growth in the quarter.
• Treasury & Sukuk portfolio grew to AED 84 billion up 2% YTD, driven by growth in financial institutions and services exposure. Revenues grew 7% YoY, supported by increasing yields on its assets.

Other Key Highlights (Q1 2025)

• DIB increased its shareholding in T.O.M. Group from 20% to 25%. This higher investment highlights DIB’s confidence in Türkiye’s financial landscape and its robust fast-scaling digital banking and fintech ecosystem. Türkiye continues to be a pivotal market for DIB, given its sizeable population, rapidly expanding digital infrastructure, and impressive economic growth trajectory. The move aligns with DIB’s vision to drive financial inclusion and bring innovative Sharia-compliant financial services to underbanked and non-banked segments.
• During the quarter, the bank issued three (3) key new publications to further drive its sustainability ambitions; the Annual Sustainability Report, the Annual Sustainable Finance Report and lastly the Sustainability-Linked Finance Facilities financing Framework, which is a first by any Islamic bank globally. This framework will support existing and new customers transform their current business model into a more sustainable and future-proof one. The focus of the framework is on Climate Change Mitigation, with predefined Key Performance Indicators related to reduction of emissions and adoption of renewable energy solutions.
• All of the recent publications reflect DIB’s ambitions towards global sustainability in terms of further driving transparency and disclosure and propelling sustainable finance. In addition, the bank also released a renewed and expanded version of DIB’s Sustainable Finance Framework which is now one of the most comprehensive in the market.
• The bank launched the DIB Academy, a new institutional platform designed to embed structured, certified, and inclusive learning across the bank. Built to serve every employee, in every function and at every level, the Academy represents a fundamental shift in how the bank views workforce development: not as a support mechanism, but as a strategic driver of performance, resilience, and relevance in an increasingly complex world.

Awards List (Q1 2025)