<a href="https://www.thenationalnews.com/business/banking/2023/02/13/dubai-islamic-bank-raises-1bn-from-sustainable-sukuk-issuance/" target="_blank">Dubai Islamic Bank</a>, the UAE's biggest <a href="https://www.thenationalnews.com/business/banking/2022/11/23/dubais-dib-raises-750m-from-debut-sustainable-sukuk-issue/" target="_blank">Sharia-compliant lender </a>by assets, reported a 24.1 per cent increase in 2023 fiscal net profit, driven by rising non-funded <a href="https://www.thenationalnews.com/business/banking/2023/12/20/uaes-islamic-finance-sector-on-a-strong-growth-trajectory-says-central-bank/" target="_blank">income</a> and lower impairment charges. Net profit attributable to owners of the bank for the 12 months to the end of December stood at Dh6.79 billion ($1.9 billion), the lender said on Tuesday in a filing to the <a href="https://www.dfm.ae/the-exchange/news-disclosures/disclosures/db70b65f-c850-4b0d-80d9-2758041aa0e7" target="_blank">Dubai Financial Market</a>, where its shares are traded. Income from Islamic financing and investing transactions for the reporting period surged nearly 46.7 per cent to Dh17.2 billion. The lender’s yearly income from properties held for development and sales rose to more than Dh237.2 million, up from Dh137.8 million in 2022. Commissions, fees and foreign exchange income also jumped more than 12 per cent on an annual basis to Dh1.79 billion in the January-December period. “The GCC financial markets had a strong year with Dubai showcasing a robust double-digit gain of more than 20 per cent year-on-year supported by a strong pipeline of IPOs [initial public offerings] and rising volume trades,” DIB chairman Ibrahim Al Shaibani said. “The banking sector also showed strong resilience with healthy and growing balance sheets and higher earnings.” The lender did not disclose the financials for the fourth quarter of 2023. DIB’s net financing and sukuk investments reached Dh268 billion last year, up 12 per cent on a yearly basis, while its balance sheet expanded strongly by 9 per cent to Dh314 billion. Net operating profit surged 10 per cent on an annual basis to more than Dh8.5 billion, compared to Dh7.7 billion in 2022 financial year. DIB's customer deposits increased to Dh222 billion, up 12 per cent with current and saving accounts comprising 37 per cent of the total deposit base, it said. The bank’s impairment charges decreased 34 per cent to Dh1.3 billion last year. The UAE's Islamic finance sector is on a strong growth trajectory, the Central Bank said in its report last month. The Islamic banking sector accounted for 23 per cent of total banking assets within the UAE in 2022, equivalent to Dh845 billion, the report said. Assets held by Islamic banks totalled Dh631 billion while Islamic windows – Islamic outlets in conventional banks – held Dh214 billion, growing at 8 per cent and 49 per cent, respectively, from 2018. Islamic windows now account for 25 per cent of total Islamic banking assets in the Emirates, it said. DIB’s 2023 profitability was supported by “significant asset growth, stable costs and strong margins” thus reflecting healthy economic conditions, Adnan Chilwan, bank’s group chief executive, said. “Over the year 2023, Dubai’s economy has propelled at exceptional rate due to the structural and cyclical factors as well as deleveraging. Banks’ credit have grown reflecting ample opportunity and liquidity aligned with the buoyant economic activities across all industries,” he said. <a href="https://www.thenationalnews.com/business/economy/2023/12/22/uae-central-bank-raises-2024-growth-forecast-for-countrys-economy-to-57/" target="_blank">Dubai’s economy</a> expanded by an annual 3.3 per cent in the <a href="https://www.thenationalnews.com/business/economy/2023/06/19/sheikh-hamdan-approves-various-projects-to-support-d33-agenda/" target="_blank">first nine months </a>of last year, the latest government data showed this month. “The expansionary agenda continues as the balance sheet grew further … financing book rose by 7 per cent to Dh199 billion across corporate and consumer businesses reinforced by a surge in corporate cross border and private sector financing,” Mr Chilwan said.