Dubai Islamic Bank (DIB) reported a strong start to 2026, delivering 13 percent year-on-year revenue growth with Q1 operating revenue reaching AED 3.5 billion, while total assets climbed to AED 420 billion. The bank’s performance was supported by broad-based business momentum, disciplined balance sheet growth and continued improvement in asset quality.
Strong Earnings and Disciplined Growth
- Operating profit: AED 2.5 billion (+12 percent YoY)
- Pre-tax profit: AED 2.1 billion
- Pre-tax ROTE: 21 percent
Growth was driven by stronger diversification across funded and non-funded income streams, with non-funded income rising 30 percent year on year.
Balance Sheet Expansion Continues
The bank maintained steady growth across its balance sheet:
- Net financing assets and sukuk investments: AED 364 billion (+3 percent YTD)
- Customer deposits: AED 322 billion
- Total assets: AED 420 billion
DIB booked AED 29 billion in gross new financing and sukuk investments during the quarter.
Asset Quality and Capital Strength Improve
DIB continued to strengthen its risk profile:
- NPF ratio: 2.5 percent
- Cash coverage ratio: 122 percent
- Total coverage ratio: 160 percent
Capital ratios also improved during the quarter:
- CET1 ratio: 12.6 percent
- CAR ratio: 15.8 percent
Liquidity remained strong, with LCR at 121 percent and NSFR at 106 percent.
His Excellency Mohammed Ibrahim Al-Shaibani
Director-General of His Highness The Ruler’s Court of Dubai and Chairman of DIB
“The first quarter of 2026 has once again shown the strength of the UAE’s foundations and the confidence that its economy continues to command, even as regional developments shape a more watchful external environment. What distinguishes the UAE in times such as these is not only the resilience of its economy, but the clarity of its leadership, the strength of its institutions and the readiness of its policy framework to preserve stability, support growth and maintain confidence across the system. The measures announced by the Central Bank of the UAE during the period are a further reflection of that preparedness and of the soundness of the country’s financial sector architecture.
Against this backdrop, DIB’s Q1 performance reflects the benefits of scale, discipline and strategic consistency. The Bank continues to operate from a position of strength, with net financing assets and sukuk investments reaching AED 364 billion and customer deposits standing at AED 322 billion by the end of the first quarter. These are not only indicators of scale; they reflect the strength of the franchise, the confidence of our customers and our ability to continue supporting economic activity with prudence and purpose.
DIB’s role has always extended beyond financial performance alone. As a leading institution in the UAE and in Islamic finance globally, the Bank remains committed to supporting the real economy, enabling opportunity across sectors, and contributing to the long-term ambitions of the UAE through a model built on strong governance, sound risk discipline and responsible growth. The task ahead is not simply to preserve strength, but to deploy it well, with prudence, purpose and a clear commitment to supporting the UAE’s progress while building enduring institutional value.”
Dr. Adnan Chilwan
Group Chief Executive Officer of DIB
“DIB delivered a strong start to 2026, with operating revenue rising to AED 3.5 billion, up 13% year-on-year, and pre-tax profit reaching AED 2.1 billion. The quarter reflects healthy business momentum, improving earnings diversification and the continued strength of the Bank’s core franchise.
Our revenue profile continued to broaden during the quarter. Funded income increased by 5% year-on-year, while non-funded income grew by 30%, reflecting stronger contribution from across the business and a more balanced income mix overall. This helped drive operating profit to AED 2.5 billion, while pre-tax return on tangible equity remained strong at 21%, in line with our focus on quality growth and sustained profitability.
Balance sheet expansion remained healthy and well supported. Net financing assets and sukuk investments grew to AED 364 billion, supported by more than AED 24 billion in gross new financing and over AED 5 billion in gross new sukuk investments during the quarter. Customer deposits rose to AED 322 billion, reinforcing the depth of our funding base and providing solid support for continued business growth.
Asset quality also continued to improve, with the non-performing financing ratio declining to 2.5%, while cash coverage strengthened to 122%. These metrics reflect the quality of our underwriting, the effectiveness of our risk discipline and our continued focus on preserving balance sheet strength as we grow.
That same prudence continues to shape the way we manage risk. Our provisioning approach, including the addition of management ECL overlay where appropriate, reflects a deliberate and disciplined stance towards risk, while supporting the long-term resilience of the Bank.
Our capital and liquidity positions also remained sound, with CET1 at 12.6%, capital adequacy at 15.8%, LCR at 121% and NSFR at 106%. This leaves us strongly positioned for the periods ahead, with the financial strength, commercial momentum and execution discipline to keep advancing our growth agenda without compromising the quality of the franchise.”
Business Segment Highlights
Consumer Banking
- Financing assets rose 6 percent YTD to AED 83 billion
- Nearly AED 11 billion in new originations
- Consumer deposits reached AED 106 billion
Corporate Banking
- Financing portfolio increased to AED 188 billion
- Nearly AED 13 billion in new originations
- Corporate deposits rose to AED 213 billion
Strategic Priorities
DIB continued to advance its digital, AI and sustainability agenda during Q1 2026:
- 98 percent of customers used digital channels
- 97 percent of transactions processed digitally
- 40+ AI and machine learning solutions deployed
- Sustainable finance portfolio stood at AED 19.5 billion
