DIB Bank Kenya (DIBBK), a subsidiary of Dubai Islamic Bank PJSC, disclosed its financial performance for the period ending March 31, 2024.
During the three-month period, the bank experienced remarkable growth, with a 105% year-on-year increase in profit before tax.
This achievement is particularly notable as it marks the first profitable quarter since the bank commenced operations in Kenya.
The bank attributes its success to a surge in customer confidence in Shariah banking and the comprehensive services offered by DIB Bank Kenya, leading to sustained expansion of its balance sheet over time.
Dr. Steve Mainda, a board member of DIB Bank, remarked on the bank’s resilience and growth amidst economic challenges.
He emphasized the long-term commitment of DIB UAE to the Kenyan market and its emerging significance in the country’s banking sector.
The bank’s strategic investments in its workforce, infrastructure, and delivery channels reflect its dedication to achieving long-term objectives in Kenya.
Key financial highlights for the first quarter of 2024 include:
Profit before tax surged to Sh.6.3 million, a 105% increase compared to the loss of Sh.125 million reported in the same period the previous year.
This growth was driven by higher core revenues, non-funded income, and reduced impairment charges.
The balance sheet expanded by 49% year-on-year, reaching Ksh.28.2 billion, supported by growth in customer deposits.
Steady growth in customer deposits across various segments resulted in a 49% year-on-year increase, reaching Sh.21.6 billion.
Efficient fund deployment led to net financing closing at Ksh.17.2 billion, a 38% increase compared to the previous year.
Liquidity remained robust at 36%, exceeding the statutory requirement of 20%.
The bank maintained strong capitalization, with a Capital Adequacy Ratio (CAR) of 18.9%, surpassing the required 14.5%.
Operational efficiency improved significantly, with the Cost-Income Ratio (CIR) decreasing to 96% from 168% reported in the same period the previous year.
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