DIB Bank Kenya Reports First-Ever Profit

DIB Bank Kenya

DIB Bank Kenya (DIBBK), a wholly owned subsidiary of Dubai Islamic Bank PJSC (the largest Islamic bank in the UAE), announced its results for the period ending March 31, 2024.

The Bank’s performance during the three months surged, with profit before tax growing by 105% YoY, supported by higher core revenues, controlled costs, and lower impairments. This marks a significant milestone for the Bank as it reports its first profit since it began its operations in Kenya.

The Bank attributes this stellar performance to increased customer confidence in Shariah banking and DIB Bank Kenya’s offering, resulting in sustained balance sheet expansion over the years.

“Despite a challenging economic environment, DIB Kenya has demonstrated resilience and achieved growth across all the key parameters. This strong performance is a testament to DIB UAE’s long-term commitment to the Kenyan market and the acceptance of its emerging position as an important banking player in Kenya. We have been investing steadily for long-term returns by focusing on our people, systems, and delivery channels and will continue to do so as required by our long-term objectives in Kenya.” DIB Bank Board Member Dr. Steve Mainda said.

Financial Highlights

 Profit before tax at Kes 6.3 million, up 105% YoY compared to a loss position of Kes 125 million reported in the same period last year. The growth was driven by rising core revenues, non-funded income, and lower impairment charges.

Balance sheet expanded strongly by 49% YoY to close at Kes 28.2 billion compared to Kes 18.8 billion same period last year, supported by growth in customer deposits,

The Bank recorded steady growth in customer deposits across various segments achieving a 49% YoY to close at Kes 21.6 billion.

Efficient deployment of funds saw Net financing close at Kes 17.2 billion, up 38% YoY compared to Kes 12.4 billion.

Liquidity remained healthy at 36% compared to the statutory requirement of 20%.

Strong capitalisation with the Capital Adequacy Ratio (CAR) at 18.9% against the required 14.5%.

The Bank also made significant strides in operational efficiency, with the Cost-Income Ratio (CIR) improving to 96%, down from 168% reported same period last year.

The future looks positive, with a projected full-year profitability for 2024. This outlook is anchored on a strong balance sheet, stable capitalisation and liquidity levels, a sustained focus on managing asset quality, and the continuous implementation of efficient business models.

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