DIB Bank Kenya, a subsidiary of Dubai Islamic Bank, has announced its impressive financial results for the period ending March 31, 2024.
The bank reported a remarkable surge in performance, with a 105% year-over-year growth in profit before tax. This outstanding achievement was attributed to higher core revenues, controlled costs, and lower impairments. Notably, this marks a significant milestone for the bank as it reports its first profit since commencing operations in Kenya.
The bank credits its stellar performance to increased customer confidence in Shariah banking and DIB Bank Kenya’s offerings, which have resulted in sustained balance sheet expansion over the years.
Dr. Steve Mainda, a board member of DIB Bank, expressed pride in the bank’s resilience and growth across all key parameters in the face of a challenging economic environment. He emphasized DIB UAE’s long-term commitment to the Kenyan market and its emerging position as a significant banking player in Kenya.
The bank’s balance sheet expanded strongly by 49% year-over-year, closing at KES 28.2 billion compared to KES 18.8 billion in the same period last year, supported by substantial growth in customer deposits. Additionally, the bank recorded steady growth in customer deposits across various segments, achieving a 49% year-over-year increase to close at KES.21.6 billion.
The efficient deployment of funds resulted in net financing closing at KES 17.2 billion, marking a 38% year-over-year increase compared to KES 12.4 billion. Moreover, the bank maintained healthy liquidity at 36%, surpassing the statutory requirement of 20%, and demonstrated strong capitalization with a Capital Adequacy Ratio (CAR) at 18.9%, against the required 14.5%.
Notably, the bank also made significant strides in operational efficiency, as evidenced by the Cost-Income Ratio (CIR) improving to 96%, down from 168% reported in the same period last year. This performance positions DIB Bank Kenya as a formidable force in the Kenyan banking sector.
