Dubai Islamic achieves strong financial results in the first half, with annual growth in total revenues of 10% to 12.4 billion dirhams

Dubai Islamic announced achieving strong financial results during the first half of 2026, supported by revenue growth and improved asset quality, as total revenues increased by 10% on an annual basis, reaching 12.4 billion dirhams, supported by continued growth in financing and non-financing sources of income. Dubai Islamic’s net profits reached 3.736 billion dirhams in the first half, compared to 3.730 billion dirhams in the first half of 2026. 2025.

Operating profits rose by 6% on an annual basis to 4.8 billion dirhams, supported by revenue growth and continued operational efficiency, while pre-tax profits amounted to 4.3 billion dirhams, with a return on tangible equity before tax of approximately 20%, reflecting the flexibility and sustainability of Dubai Islamic’s profit sources.

In terms of asset quality, Dubai Islamic continued to record an improvement in the quality of assets, with the percentage of non-performing financing declining to 2.4%, a decline of 30 basis points since the beginning of the year, while the cost of risks stabilized at a low level of 28 basis points, which reflects the quality and durability of the financing portfolio.

Dubai Islamic also maintained a strong cash coverage ratio of 122%, rising by 200 basis points since the beginning of the year, while the overall coverage ratio stabilized at 158%.

Customer deposits increased by 2% since the beginning of the year to reach 327 billion dirhams, supported by continued momentum in attracting customers and the growth of current and savings account balances, which amounted to 112 billion dirhams, an increase of more than 1% since the beginning of the year.

Net financing assets increased by 7% to date to reach 281 billion dirhams, reflecting the continued strong momentum in financing activities across the bank’s main sectors, supported by strong demand across the retail and institutional banking sectors, with a total of new financings recorded at a value of 43 billion dirhams during the period.

The growth in revenues, discipline in cost management, and low risk costs contributed to achieving pre-tax profits of 4.3 billion dirhams, while the return on tangible equity before tax remained at 20%.

Dubai Islamic maintained its strong capital and liquidity position, as the ratio of the first tier of common capital (CET1) reached 13%, and the liquidity coverage ratio (LCR) reached 140%, while customer deposits increased to 327 billion dirhams.

This continued growth reflects the strength of the bank’s institutional excellence and its ability to meet the needs of customers and support them across various major business sectors.

The Director-General of the Court of His Highness the Ruler of Dubai and Chairman of the Board of Directors of Dubai Islamic, His Excellency Mohammed Ibrahim Al Shaibani, said: “The first half of 2026 witnessed an operating environment characterized by increasing challenges, in light of continuing geopolitical developments, changing global economic and financial expectations, and fluctuations in levels of confidence in global markets, and the accompanying impact on investor and business decisions. Despite these changes, the UAE continued to maintain its stability and demonstrate high levels of flexibility, supported by the diversification of its economy, the efficiency of its policies and commitment to their implementation, and the strength of its financial sector. The economic performance of the Emirate of Dubai clearly embodies this flexibility, as the emirate’s gross domestic product reached 232 billion dirhams during the first quarter of 2026, a growth of 2.4% on an annual basis.”

He added: “In such circumstances, the importance of good governance, the strength of the balance sheet, and disciplined capital management for the banking sector increases, and Dubai Islamic’s performance during the first half of the year reflects these foundations, as net financing assets increased by 7% since the beginning of the year, to reach 281 billion dirhams, while customer deposits grew by 2% since the beginning of the year to reach 327 billion dirhams, which confirms the continued confidence that Dubai Islamic enjoys among its customers. And the markets.”

Al-Shaibani continued: “The Board of Directors continues to focus on achieving sustainable growth based on discipline and efficiency, and not just growth in size. In light of the current economic changes, maintaining asset quality, liquidity and capital strength is no less important than expanding the scope of business. Dubai Islamic’s results reflect its success in achieving growth on solid and sound foundations, supported by prudent risk management and a solid business model based on the principles of Islamic banking.”

He pointed out, “As the UAE continues to consolidate its economic position and enhance its global presence, Dubai Islamic will continue to play its role in supporting this process, and our priorities will remain clear, which are to preserve the strength of Dubai Islamic, support the real economy, enhance customer confidence, and consolidate the position of Islamic banking as a modern banking model that combines responsibility, sustainability, and competitiveness, and is based on the principles and values ​​of Islamic Sharia.”

For his part, CEO of Dubai Islamic Group, Dr. Adnan Chilwan: “Dubai Islamic achieved strong performance during the first half of 2026, as operating revenues increased by 10% year-on-year to reach 12.4 billion dirhams. This growth was supported by the strong performance of both funded and unfunded income, reflecting the diversification of revenue sources and the continued demand for our Sharia-compliant banking products and services.

Profitability also continued its strong performance, as operating profits increased by 6% year-on-year to reach 4.8 billion dirhams, supported by revenue growth, discipline in cost management, and continued operational efficiency. Profits before tax amounted to 4.3 billion dirhams, while profits after tax stabilized at 3.7 billion dirhams, while the return on tangible equity before tax remained close to 20%, which reflects the quality of profits and our focus on achieving sustainable growth and balanced returns, and not just expanding the size of the balance sheet.

He added: “The balance sheet continued to grow at a deliberate pace based on strong foundations, as net financing assets increased by 7% since the beginning of the year to reach 281 billion dirhams, driven by the continued demand for financing in the retail and institutional banking sectors. Total assets reached 423 billion dirhams, while customer deposits increased to 327 billion dirhams, supported by the continued attraction of customers and the growth of current and savings account balances.

Chilwan continued: “The quality of assets continued to improve, which represents an important indicator in light of the current operating environment, as the percentage of non-performing financing improved to 2.4%, while the cost of risks remained at a low level of 28 basis points, and the cash coverage rate reached 122%. These indicators reflect the quality of credit underwriting policies, the efficiency of financing portfolio management, and the strength of Dubai Islamic’s financing portfolio while continuing to achieve growth.”