#1بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Investor Presentation For the period ending 31 December 2023#2Disclaimer بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: This presentation may contain statements about future events and expectations that are forward-looking statements. These statements typically contain words such as "expects" and "anticipates" and words of similar import. Any statement in this presentation that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. 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Additionally, this presentation contains translations of currency amounts solely for the convenience of the reader, and these translations should not be construed as representations that these amounts actually represent such U.S. dollar amounts or could be converted into U.S. dollars at the rate indicated. 2#3Contents 1 Overview 2 3 Financial Performance Strategic Focus & Theme 4 Appendix بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew 3#460 World Bank Forecasts Slower Global Growth in 2024 Brent Oil (USD/barrel) Key Highlights: 100 80 милит Jun-23 Jan-23 Feb-23 Mar-23 Apr-23 Global Real GDP Growth Global Advanced MENA May-23 2.6% 2.4% 1.9% 1.2% 2023 Sources: World Bank, Forbes, Refinitiv Jul-23 Aug-23 بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Global growth, inflation and finally Fed rates were key global themes during 2023 and will likely shape the year ahead. Inflation is clearly trending lower, however central banks will likely be slow to make major rate cuts. China's slower growth and the geopolitical risk remain an overhang in 2024. Despite the World Bank expecting slower GDP global growth in 2024e due to sluggish global trade and tight monetary policies, MENA is set to deliver higher growth on the back of ending oil production cuts in 1Q 2024. Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Fed Rate Hikes (bps) 3.5% 50 0 75 75 75 75 5 Credit facilities continue to grow in the GCC region despite higher rates supported by strong economic indicators and robust revenue growth of banks. GCC Banking Sector Total Assets (USD bn) 50 50 ■Conventional ■Islamic 3,117 2,766 2,847 2,880 2,939 3,007 3,054 768 771 841 851 869 887 748 15% YoY 5% YoY 1.5% 25 25 25 25 25 2,028 2,088 2,118 2,108 2,156 2,196 2,230 2024e Mar May Jun Jul 2022 2022 2022 2022 Sep Nov Dec Feb Mar May July Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 2022 2022 2022 2023 2023 2023 2023 4#5UAE economy on an upward trajectory UAE PMI Index CB UAE GDP Expectations 54.2 54.1 54.4 54.3 57.0 56.9 57.7/1 56.7 56.6 57.4 56.0 5.9% 55.9 55.5 55.0 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 -3.4% 2023e بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Dubai GDP Breakdown (%) - 9M 2023 Oil ■Non oil ■Total GDP Others, 25% 8.1% 5.7% 4.7% Accomodation & food services, 3% AED 318 bn (+3.3% YoY) 3.1% Dubai International Visitors & Occupancy Rates Dubai Real Estate Sector Trends 70.8% Visitors (m) Hotel Occupancy (%) Transaction Value (AED bn) # of transactions 75.7% 12.5 263,936 10 9M 2022 Sources: CB UAE, DFM 9M 2023 FY2022 96,474 411,740 FY2023 133,134 2024e 4000 3500 3000 02-Jan-2023 02-Feb-2023 Wholesale & Trade, 25% Transportation & storage, 13% Real Estate & Construction, 15% Financial & Insurance, 11% Manufacturing, 8% Dubai Financial Market (General Index) 02-Mar-2023 02-Apr-2023 02-May-2023 +22% YTD 02-Jun-2023 02-Jul-2023 02-Aug-2023 02-Sep-2023 02-Oct-2023 02-Nov-2023 02-Dec-2023 5#6Contents 1 Overview 2 Financial Performance 3 Strategic Focus & Theme 4 Appendix بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew 6#7Key Highlights - FY 2023 The global economy remained intact despite higher rates and oil price volatility. بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew UAE's economy is expected to grow by 5.7% in 2024e according to the Central Bank, amongst the highest in the region. ☐ Exceptional results from DIB breaking historical records. Balance sheet growth by 9% YoY reinforcing the bank's expansionary momentum. Net financing and sukuk investments expanded by 12.3% YoY, well beyond full year guidance. Stellar profitability with net profit crossing AED 7 billion, up 26.3% YoY. Asset quality came in better than expected at 5.4%, beating guidance. Net Financing & Sukuk AED 268 bn Net Profit Total Assets AED 7.0 bn AED 314 bn 12.3% YoY 26.3% YoY 9.0% YoY Kil 7#8Resilient Balance Sheet Performance AED million Dec 2023 Dec 2022 Net financing assets & sukuk investments Total Assets Customer Deposits Sukuk financing instruments 267,626 314,292 222,054 20,481 YOY Change 238,271 12% 288,238 Sep 2023 9% 265,253 313,380 QoQ Change 1% 0% 198,637 12% 220,917 • 1% 22,340 (8%) 20,482 0% Equity 47,406 43,975 8% 46,009 3% Total liabilities & Equity 314,292 288,238 9% 313,380 0% NPF ROTE RoA CET1 CAR Asset Growth (AED bn) 287 282 279 275 300 292 288 313 314 بنك دبي الإسلامي • FY 2023 Highlights Dubai Islamic Bank #Ready For TheNew Robust growth in net financing and sukuk investments now at AED 268 billion, up by 12.3% YoY. Financing assets were up 7.2% YTD while the fixed income book closed the year at AED 68 billion, up by 30.5% YoY. Gross new financing & sukuk investments in FY 2023 amounted to AED 88 billion up a strong 40% YoY. Total assets now at AED 314 billion growing by 9% YoY. Significant improvements in core DIB asset quality portfolio leading to NPF declining by 110 bps to 5.4%. 5.4% 20.0% 17.0% 6.5% (110 bps) 300 bps 6.0% (60 bps) 18.0% 200 bps 2.3% 2.0% 30 bps 2.2% 12.8% 12.9% 17.3% 17.6% (10 bps) (30 bps) 13.6% 18.1% 10 bps (80 bps) (80 bps) • Net Financing & Sukuk (AED bn) Deposits (AED bn) Net Financing Sukuk 187 191 194 199 199 187 186 185 190 206 204 202 42 22 44 47 49 52 55 61 66 68 221 222 211 199 198 187 FY Q1 H1 9M FY Q1 H1 9M FY 2021 2022 2022 2022 2022 2023 2023 2023 2023 FY Q1 H1 9M FY Q1 H1 9M FY 2021 2022 2022 2022 2022 2023 2023 2023 2023 FY Q1 H1 9M FY Q1 H1 9M FY 2021 2022 2022 2022 2022 2023 2023 2023 2023 ROTE - Being the ratio of annualized net profit attributable to shareholders to average shareholders' equity adjusted for the estimated proportionate dividend and excluding Tier 1 issuances. ROA - Being the ratio of annualized net profit (excluding one off / exceptional items) for the group to average total assets. 8#9Annual Record High Profitability بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew YOY YOY QoQ AED million FY 2023 FY 2022 4Q 2023 4Q 2022 3Q 2023 % Change % Change % Change Total Income 20,142 14,101 43% 5,594 4,229 32% 5,239 7% Net Operating Revenue 11,665 10,467 11% 3,118 2,814 11% 2,967 5% Operating Expenses (3,162) (2,733) 16% (900) (693) 30% (791) 14% Profit before Impairment and Tax 8,503 7,734 10% 2,218 2,121 5% 2,177 2% Charges Impairments (1,396) (2,103) (34%) 13 (653) (102%) (450) (103%) Income Tax (98) (79) 23% (44) (18) 149% (14) 212% Group Net Profit 7,010 5,552 26% 2,186 1,451 51% 1,713 28% C/I Ratio NPM 27.1% 26.1% 100 bps 28.9% 24.6% 430 bps 26.6% 230 bps 3.1% 3.0% 10 bps 3.1% 3.4% 30 bps 3.1% Group Net Profit Movement (AED million) 8% 23% 428 553 644 5,552 Net Profit FY 2022 Net Funded Income Non Funded Income . 16% -34% 23% 26% 7,010 • 18 (707) OPEX Impairments Income Tax Net Profit FY 2023 . • Key Highlights Robust total income growth reaching AED 20.1 billion up of 43% YoY. Operating revenues up by 11% YoY to AED 11.7 billion, this supported by: Net funded income growth of 8% YoY Non funded income growth of 23% YoY NPM up 10 bps YoY to reach to 3.1%. Impairments significantly down by 34% YoY to AED 1.4 billion. Charges during the quarter witnessed reversal of AED 13 million due to the banks success in achieving settlements against certain large legacy accounts. 9#10Profitability & Cost Structure Non Funded Income Composition (AED million) Fees/Comm & FX ■Inc. from Prop HFS Other Income ■Inc./loss other inv. Inc. from Inv. Prop. ■Inc. from Assoc. OPEX trends (AED million) بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew 9% 27% 12% 16% 3,500 266 22 3,162 881 3,000 141 2,733 737 104 713 706 2,500 39 48 30 139 562 594 592 47 79 69 494 59 42 42 47 29 52 28 38 57 28 55585 43 78 2,000 92 155 57 89 44 1,500 39 13 1,000 492 490 502 414 417 365 385 330 500 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Profitability (AED mn) I Net Operating Revenue Group Net Profit 11,665 10,467 9,422 4,406 2021 FY 2022 OPEX Personnel General & Admin Depreciation FY 2023 OPEX Net Profit Margin (%) Profit Bearing Assets (AED mn)² Net Profit Margin (%) 1 3.1% 3.0% 287,279 7,010 2.6% 5,552 2022 2023 268,508 256,543 2021 2022 2023 Cost to Income (%) 26.1% 26.9% 26.5% 26.4% 27.1% FY 2022 Q1 2023 H1 2023 9M 2023 FY 2023 1Net Profit Margin is calculated as Depositors' share of profits subtracted from income from Islamic Financing and Investing Assets transactions divided by Average Profit Bearing Assets. 2Profit Bearing Assets are calculated as the sum of Islamic placements with UAE Central Bank and banks, Islamic financing and investing assets and investment in Islamic Sukuk. 10#11Overview of Deployment of Funds/Financing Deployed Funds Composition (AED bn) ■Net Financing Assets Due from banks & Fl Cash & CB balances Sukuk Investments Investment in equities & properties Others 10 290 11 6 35 29 7937 279 10 42 28 10 314 288 955 52 26 5 68 197 187 186 199 2020 2021 2022 Breakdown of Financing Portfolio by Sector (%)* Real Estate, Dec 2022 Corporate, 53% 20% Consumer, 27% 0 Corporate covers all sectors except Real Estate Net Deployed by Segment (AED bn) بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Dec 2021 Dec 2022 Dec 2023 143 138 134 49 449 68 52 2 22 62 56 52 42 2023 Corporate Consumer Sukuk investment Real Estate, 18% Consumer, 27% Dec 2023 0 Corporate, 55% • Highlights 85% of total assets are in the form of high yielding profit bearing assets. Net financing assets up by 7% YoY to AED 199 billion. Growth in Sukuk investments of 31% YoY to AED 68 billion. Real Estate exposure at 18%, beating guidance. 11#12Segmental Overview - Consumer بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Management Commentary Breakdown by Portfolio - Dec 2023 Revenue Trends (AED mn)* . Portfolio is up by 8% YoY to AED 56 billion. +9% 5,323 Gross new consumer financing amounted to AED 22 billion, 22% higher YoY. Positive growth in revenues up 9% YoY to AED 5.3 billion. Home Finance, 44% Personal Finance, YoY 4,875 34% 856 846 AED 56 bn 6.78% 5.96% • Yields grew to 6.8%, up 82 bps YoY. Automobile, personal finance and SME business supported consumer banking portfolio growth YoY. CASA balance is stable over the year despite high profit rates, showing stickiness in consumer portfolio. Segment Net Financing / Deposits (AED bn) 19 49 80 79 49 52 42 79 56 888 Auto Finance, 17% 4,029 Cards, 5% FY 2022 4,467 FY 2023 Fees & Commission, Others Net Funded Income Yield on Financing CASA (AED bn) 32 31 30 30 19 19 19 18 2020 2021 Net Financing 2022 2023 Deposits 2020 2021 2022 2023 Current Account Savings Account Segmental results for current and prior years reflect results in accordance with enhanced management account policies for cost allocation and transfer pricing. 12#13Segmental Overview - Corporate بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Revenue Trends (AED mn)* Management Commentary Breakdown by Portfolio - Dec 2023 • Highly diversified portfolio now standing at AED 143 billion, up by 7% YoY. Trade, 6% Utilities, 4% Automobile, 5% +1% YoY 2,882 Aviation, 10% 2,844 6.48% • . Gross new financing amounted to AED 45 billion, up 45% YoY while repayments and early settlements registered AED37 billion Services, 22% leading to almost AED 9 billion growth in the portfolio. Revenues up 1% YoY just under the AED 3 billion mark. Yields ascending to 6.5%, up 263 bps due to the floating nature of the corporate book. Segment Net Financing / Deposits (AED bn) Real Estate, 24% Contracting, 3% 419 641 2,425 AED 143 bn Financial Institutions, 5% 2,241 3.85% Government, 15% FY 2022 FY 2023 Manufacturing, 5% Oil & Gas, 1% Fees & Commission, Others Net Funded Income Yield on Financing CASA (AED bn) 147 143 138 134 134 125 127 120 2020 2021 Net Financing 2022 Deposits 2023 22 21 20 19 19 18 17 12 2020 2021 2022 2023 Current Account Savings Account Corporate banking charts reflect corporate and real estate, excluding treasury * Segmental results for current and prior years reflect results in accordance with enhanced management account policies for cost allocation and transfer pricing. 13#14Segmental Overview - Treasury بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Management Commentary . Treasury portfolio surged to AED 68 billion, up 31% YoY from AED 52 billion at end of 2022. Government and Fl sectors constitute nearly 80% of the portfolio. Breakdown by Portfolio - Dec 2023 Services, 15% Aviation, 1% Financial Institutions, 8% • Over the period, gross new sukuk investment bookings increased by 52% to AED 21 billion. Real Estate, 5% Revenue picked up by 34% to AED 2 billion. Yields on fixed income book expanded by 58 bps to 4.6%. Segment Net Sukuk (AED bn) 35 Revenue Trends (AED mn)* AED 68 bn Government, 71% Net Funded Income Yield on Financing & Sukuk Fees & Commission, Others 34% 2,006 1,495 YOY 238 226 4.64% 68 42 52 4.06% 42 1,768 2020 2021 2022 2023 1,269 FY 2022 *Segmental results for current and prior years reflect results in accordance with enhanced management account policies for cost allocation and transfer pricing. FY 2023 14#15Asset Quality Impairment charges (AED mil) and cost of risk (COR %) Impairment charges (AED mil) COR 0.9% 0.8% 0.7% 1.1% 0.8% 0.7% 0.7% بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Provisioning (AED mil), NPF¹ (AED mil) and Cash Coverage Ratio (%) Provisions NPF Coverage Ratio % 90% 13,784 76% 12,061 9,900 12,986 * 11,497 ** 10,130 78% 10,305 72% 9,203 417 531 502 496 463 450 653 0.2% -13 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2020 2021 2022 2023 NPF and Total Coverage (%) -Total Coverage (%) NPF 6.7% 6.5% 6.5% 6.5% 6.5% 6.4% 6.0% 121% 117% 5.4% 113% 113% 110% 105% 103% 103% Q1 2022 H1 2022 Q3 2022 FY 2022 Q1 2023 H1 2023 Q3 2023 FY 2023 Highlights • • Non Performing Financing (NPF) declined by 11.5% YoY to AED 11,497 million leading to NPF ratio improvement by 110 bps YoY to 5.4% - lowest ratio since the pandemic. NPF Cash Coverage enhanced to 90%, up 1200 bps YoY underpinning DIB's overall prudent risk strategy. Provision charge for the period is at AED 1,396 million down 34% YoY. 4Q 2023 witnessed a small reversal of AED 13 million due to the banks success in achieving settlements against certain large legacy accounts. • Cost of risk in YE 2023 as a result is trending downwards to 60 bps, down 25 bps YoY. ¹NPF ratio includes Bilateral Sukuk and is calculated as the sum of individually impaired Financing Assets; 2Overall Coverage Ratio is calculated as the sum of provisions held including regulatory credit risk reserve (if any) and collateral held relating to facilities individually determined to be impaired divided by non-performing financing. *Includes Purchased or Originated Credit Impaired (POCI) through Noor Bank acquisition; ** Total provision includes stage 1 & 2 ECL held in Noor Bank and PPA adjustments Cost of Risk-Being ratio of net impairment charge on financing assets, sukuk and overdraft charge to the aggregate gross outstanding balances of financing assets, sukuk investments and overdrawn accounts. 15#16Asset Quality - Detailed Insights NPF (AED mn) بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Core DIB NMC Noor Bank POCI FY 2023 9,583 1,178 736 11,497 9M 2023 10,904 1,177 784 12,865 NPF Ratio (%) NMC Noor - POCI ■DIB - NPF NMC, 0.56% Noor - POCI, 0.34% 1H 2023 10,901 1,214 783 12,898 Q1 2023 10,748 1,235 841 12,824 FY 2022 NPF 5.4% 10,771 1,276 939 12,986 9M 2022 10,919 1,341 967 13,227 1H 2022 11,272 1,384 997 13,653 DIB-NPF, 4.50% Q1 2022 11,128 1,492 1,004 13,624 Coverage Ratio (%) -DIB -NMC Noor POCI 93% 87% 79% 81% 83% 83% 84% 79% Highlights Absolute NPF declined by AED 1,489 million YoY, to AED 11,497 million due to: • Core DIB NPF reduced by AED1,188 million dropping the NPF ratio by 85 bps to 4.5% YoY 80% 80% 78% 77% • 74% 68% 70% 63% 34% 36% 39% 39% 28% 23% 24% 21% Q1 2022 1H 2022 9M 2022 FY 2022 1Q 2023 1H 2023 9M 2023 FY 2023 NMC and Noor POCI combined exposure declined by AED 301 million YoY to AED 1,914 million Accordingly, coverage ratios across DIB core portfolio improved to 93% up 1000 bps YoY while NMC coverage is up 600 bps YoY and Noor POCI up 1100 bps YoY. 16#17Asset Quality (contd.) Islamic financing and investing assets (Gross Exposure by stages) Stage 1 (AED million) Stage 2 (AED million) Gross Exposure ECL Coverage* Gross Exposure ECL Coverage* بنك دبي الإسلامي Stage 3 (AED million) Dubai Islamic Bank #Ready For TheNew Gross Exposure - ECL Coverage* 1.0% 9.1% 68.3% 65.4% 0.8% 7.5% 7.4% 62.9% 0.8% 61.2% 0.7% 0.7% 6.7% 5.6% 56.7% 12,898 12,865 12,986 15,599 18,232 18,433 14,327 13,784 166,251 167,373 177,036 182,532 19,805 162,028 T 2021 2022 H1 2023 9M 2023 FY 2023 2021 2022 H1 2023 9M2023 FY 2023 Expected Credit Loss Provision Balance (AED million) * Stage 1 Stage 2 Stage 3 and POCI 6,943 6,693 6,895 7,150 6,677 9621,021 9831,117 1,220 886 1,303 877 1,274 951 2021 2022 H1 2023 9M 2023 FY 2023 Note: Including Noor Bank acquisition adjustments. 11,497 T 2021 2022 H1 2023 9M 2023 FY 2023 Highlights • • • Stage 2 financing dropped to AED 14 billion down by 8% YoY on the back of improvement towards average risk grades. Stage 2 coverage accordingly improved to 9.1% up 160 bps from 7.5% at YE 2022. Stage 3 financing also significantly dropped to AED 11.5 billion due to successful settlements from both consumer and corporate clients. 17#18Funding Sources and Liquidity Funding Sources (AED bn) I Due to banks & Fls ■Other payables Equity Sukuk ■Customers' Deposits 314 290 288 280 13 14 12 13 3 8 10 47 43 41 44 20 19 21 22 222 206 206 199 2020 2021 Customer Deposits (AED 222 bn as at 31 Dec 2023) Investment Deposits, 63% 2022 By Type By Business Current Account, 19% Consumer, 40% Savings Account, 18% *Net Financing to Deposit Ratio excludes Bilateral Sukuk 2023 بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Liquidity Coverage Ratio (LCR) Liquidity Coverage Ratio (%) 189% 150% 136% 129% 2020 2021 2022 2023 Highlights 0 Wholesale, 60% • • • Liquidity remains robust: ➤LCR at 189% NSFR at 106%. CASA deposits now stand at AED 82 billion, flat QoQ and accounts to 37% of deposits. Wakala (investment deposits) share of total deposits remains elevated at 63% in light of the rate environment. 18#19Capitalization Overview Regulatory Capital¹ (AED billion) Capital Ratios بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew ■CET 1 AT1 ■Tier 2 CAR CET1 Ratio Tier 1 42.9 41.4 39.1 40.7 18.5% 2.8 17.1% 17.6% 17.3% 2.6 2.6 2.6 8.3 8.3 11.9 17.3% 8.3 16.0% 16.5% 16.1% 12.0% 12.4% 12.9% 12.8% 26.9 28.2 29.8 31.8 2020 2021 2022 2023 2020 2021 2022 2023 Dividend History* ** 40% 45% 15% 25% 45% 45% 35% 35% 20% 25% 30% 45% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 • Highlights A solid capital base remains a core strength of DIB's financial position ➤ Capital Adequacy Ratio stands at 17.3% down 30 bps YoY. ➤ CET 1 ratio stands at 12.8%, down 10 bps YoY. Both well above regulatory requirements. Proposed dividend of 45% which is subject to shareholder approval during AGM, reflecting the banks commitment towards shareholder returns. The above capital ratios reflect the proposed dividend as well as RWA growth. 1 Refers to Regulatory Capital under Basel III; * Dividend is calculated as dividend per share divided by par value of a share. ** Proposed and subject to AGM and regulatory approvals. 19#20بنك دبي الإسلامي Digital drive continue to support overall growth of DIB Digital Registered User Base* ('000) Mobile Banking Transactions ('000) Dubai Islamic Bank #Ready For TheNew Internet Banking Transactions ('000) +13% YOY 1,328 1,174 1,023 867 +5% +24% YoY YOY 5,161 22,494 4,902 4,534 18,181 3,943 14,614 11,179 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023 Access your DIB account with UAE PASS BANK AIM Latest on the Digital Front • The continued growth of the digital metrics were supported by ongoing digital campaigns such as promoting mobile app for new DIB customers and to ATM customers. DIB's partnership with Moro Hub to use their green data centers is a significant stride in sustainable digital transformation. This collaboration aligns with DIB's operational goals and the UAE's sustainability objectives while significantly reducing our footprint. carbon الهوية الرقمية UAE PASS 100K+ SUBSCRIBERS Digital Registered User Base (Business to Date): overall registered internet banking / mobile banking app users 20 20#21華 YTD update on DIB'S ESG Vision and 2030 ESG Strategy COP28 UAE 000 بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Propel Sustainable Finance Sustainable finance assets continues to expand driven by the launch of eco-friendly suite of retail products and increased green corporate financing. Associate Pathways Partner at COP28 Participation at COP28 signifies DIB's commitment to accentuate the importance of sustainable finance resulting in a combined pledge of AED 1 trillion from the banking sector. DIB Financial Literacy Program 4000+ students empowered through DIB Financial Literacy Program since its inception. The One Tree for Everyone 51,000 trees planted under 'The One Tree for Everyone' initiative. Community Support Initiatives Contributed nearly AED549 million to various community support initiatives benefiting recipients in need 21#22Growing ESG asset portfolio supporting the UAE's sustainable finance ambitions Sustainable Sukuk Issuances DIB published an inaugural Sustainable Finance Report, providing details on the following at an aggregate level: 1. Eligible Sustainable Asset Portfolio 2. Portfolio proceeds, split into eligible categories 3. Estimated impact metrics Allocation Highlights (%)* Access to Essential Services 2% Affordable Housing 15% بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Renewable Energy 8% Energy Efficiency 14% Issuer Date Rank Net Proceeds (USDm) Coupon Tenor ISIN Key Highlights* USD 1.75 bn Sustainable Sukuk Issued Clean Transportation 7% Dubai Islamic Bank 09-Feb-2023 Senior Unsecured 22-Nov-2022 Senior Unsecured 1,000 4.800 5.5 yr ZM9734348 CORP 750 5.493 5 yr ZN4974780 CORP Employment Generation 35% Green Buildings 18% 87% Eligible Sustainable Asset Portfolio allocated 47% Green Asset Portfolio 53% Social Asset Portfolio • As of 31st August 2023 . Selected Case Highlights Noor Energy 1 Solar Project • DIB disbursed $180m towards the Noor Energy 1 Solar Project The solar project will have a power generation capacity of 950MW upon completion • NAFFCO Firefighting • NAFFCO is a leading manufacturer in the Middle East NAFFCO PASSION TO FECICC In addition to the social impact of its core products, NAFFCO has a Green Policy 22#23Contents 1 Overview 2 3 Financial Performance Strategic Focus & Theme 4 Appendix بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew 23#24Summary Highlights - FY 2023 بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew 2023 was a stellar year for DIB where new financing underwriting exhibited solid growth up 37% YoY to AED67 billion. This resulted in net growth of AED 13 billion (post routine repayments and early settlements). The sukuk investment portfolio also witnessed solid growth adding AED 16 billion of net new investments to the portfolio to AED68 billion up 31%. Net Financing and Sukuk growth YoY beats guidance at 12% underpinning the bank's franchise value. Management's commitment for growth depicted through balance sheet expansion of 9%. Asset quality enhancement to 5.4% strengthens the portfolio position and fortifies the bank's position in achieving settlements. DIB outperformed on all year end guidance successfully delivering on its commitment to enhancing shareholders returns with ROTE of 20% in FY 2023. Target Metrics Net financing & Sukuk growth NPF FY 2023 Guidance FY 2023 Actual 5% Revised to 7.5% 12% 6.3% 5.4% Real Estate Concentration 20% 18% Return on Assets 2.0% 2.3% Net Profit Margin 3.0% 3.1% Total Coverage* 113% 121% Cost to Income Ratio 28% 27.1% Return on Tangible Equity 17% 20% *Including collateral 24#25Strategic Theme 2022 - 2026 DRIVE DRIVE بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Digital Transformation سرا ༣། Robust Foundation Increase Value л Versati ersatile Operation Engaging Experience 2024 - Target Metrics Growth 5% NPF 5% Real Estate Concentration 18% Return on Assets** 2% Return on Net Profit Margin 3% Total Coverage* 130% Cost Income Ratio 27% 18% Tangible Equity** Including collateral ROTE and RoA metrics include impact of corporate tax rate 25#26Contents 1 Overview 2 Financial Performance 3 4 Strategic Focus & Theme Appendix بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew 26#27Consolidated Income Statement AED million Net Income Income from Islamic financing and investing transactions Commission Income (loss) from other investments measured at fair value Income from properties held for development and sale Income from investment properties Share of profit from associates and joint ventures Other Income Total Income Depositors' and Sukuk holders' share of profit Net Income Operating Expenses Personnel expenses 31 Dec 2023 بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew 31 Dec 2022 17,227 11,739 1,795 1,601 31 56 237 138 344 230 215 128 294 209 20,142 14,101 (8,477) (3,634) 11,665 10,467 (1,724) (1,583) General and administrative expenses (1,232) (967) Depreciation of investment properties (63) (64) Depreciation of property, plant and equipment (142) (120) Total Operating Expenses (3,161) (2,733) Profit before net impairment charges and income tax expense 8,504 7,734 Impairment charge for the period, net (1,396) (2,103) Profit for the period before income tax expense 7,108 5,631 Income tax expense (98) (79) Net Profit for the period 7,010 5,552 Attributable to Owners of the Bank Non-Controlling Interests 6,798 5,474 212 77 27#28Consolidated Balance Sheet AED million Assets Cash and balances with central banks Due from banks and financial institutions Islamic financing and investing assets, net Investments in Islamic Sukuk measured at amortized cost Other investments at fair value Investments in associates and joint ventures Properties held for sale Investment properties Receivables and other assets Property, plant and equipment Total Assets بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew 31 Dec 2023 31 Dec 2022 31 Dec 2021 24,020 26,489 28,080 4,484 4,607 3,303 199,453 186,043 186,691 68,172 52,228 41,794 847 1,025 1,229 2,432 1,949 1,945 1,050 1,488 1,572 5,625 5,262 5,499 6,324 7,490 7,475 1,885 1,658 1,494 314,292 288,238 279,082 Liabilities and Equity Liabilities Customers' deposits Due to banks and financial institutions Sukuk financing instruments Payables and other liabilities Total Liabilities Equity Share Capital 222,054 198,637 205,845 12,967 12,809 2,584 20,481 22,340 20,563 11,356 10,477 8,625 266,858 244,264 237,617 7,241 7,241 7,241 Tier 1 Sukuk 8,264 8,264 8,264 Other Reserves and Treasury Shares 14,785 14,655 14,085 Investments Fair Value Reserve (1,332) (1,063) (973) Exchange Translation Reserve (1,741) (1,566) (1,314) Retained Earnings 17,341 13,772 11,563 Equity Attributable to owners of the banks 44,557 41,304 38,866 Non-Controlling Interest 2,877 2,671 2,599 Total Equity 47,434 43,975 41,465 Total Liabilities and Equity 314,292 288,238 279,082 28#29Strategy 2022- 2026 Aligning DIB to the ambitions and the expansionary agenda of the UAE بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Embarked on a new five-year strategy that will... Strengthen the Group >reinforce > energize > adapt Grow the Group *** > diversify > innovate> expand Strengthen the capital base, enhance operational efficiencies whilst safeguarding the business against market volatilities through robust compliance, risk management and controls. Deliver balance sheet growth through deeper penetration of existing customer base by targeting new customer segments as well as enhancing and expanding the global operations. 29#30DIB'S ESG Vision and 2030 ESG Strategy Strategic vision: "Own the ESG space" Strategic Pillars بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Lead by Example Finance a Sustainable Future We aim to become a role model in sustainable practices and behaviors in By embracing sustainable business practices in serving our customers and our own operations and towards our employees communities and influencing others in adopting the same Priority Areas Our role in leading by example and financing a sustainable future is underpinned by 8 key priority areas that address the ESG topics that are most relevant to us and our stakeholders. Embrace Diversity & Inclusion Enhance Employee Wellbeing Drive Transparency & Disclosure Reduce Operational Environmental Footprint Objectives Champion Business Ethics and Customer Privacy 器 Propel Sustainable Finance Promote Financial Inclusion Embed ESG in decision making Be the most diverse Islamic financial institution in our markets of operation Position ourselves as an employer of choice in the banking sector Disclose our financial and non- financial performance in line with best-in- class standards Achieve Net Zero within operations and significantly reduce our footprint across water, waste and energy Be recognized as a trusted institution to our customers and business partners Significantly step up the share of our funding activities towards sustainable projects Be the preeminent banking partner to the underrepresented segments of society Fully integrate ESG risk assessment and mitigation into all our financing decisions#31DIB - A leading global Islamic bank ■ Dubai Islamic Bank ("DIB" or the "Bank") was established in 1975. ☐ Amongst the Top 3 Islamic Bank by assets globally ☐ 4th largest bank by assets in the UAE. ■ A solid branch network of 56 branches in the UAE and 542 ATMs and CCDMs. ■ 27.97% owned by the Investment Corporation of Dubai and rest is public. بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew More than 9,000 employees across the Group 5 million+ customers globally Designated ("D-SIB")* in 2018 *Domestic Systemically Important Bank Robust credit ratings reflecting strong domestic franchise Credit Ratings Moody's A3 Stable Fitch A Stable Islamic International Rating Agency (IIRA) A+/A1 Stable International Geographic Presence Existing Presence & Branch Numbers FOL increased to 40% Significant Subsidiaries and Associates ور النشر DAR AL SHARIA TAMWEEL 92.0% 100.0% THE ROWE OF HOME FINANCE Bosnia (32) بتك ربي الإسلامي 100.0% Dubai Islamic Bank Pakistan Turkey Pakistan (235) BBI 27.3% Sudan (129) UAE (56) Bosna Bank International Kenya (6) ديار DEYAAR Indonesia (10) 44.9% بنك الخرطوم Bank of Khartoum 29.5% PaninDubai 25.1% Syarlah Bank DIB Bank Kenya Limited 100.0% 31#32DIB's Key Business Lines Core Business Profiles Consumer Banking Serving close to 2 million customers in the UAE. Offering its retail and business banking services through a network of 56 branches and more than 542 ATMs and CCDMs across UAE Broad range of retail products and services that include: Auto Finance; Sharia-compliant Cards; Personal Finance; Mortgages and SME Solutions. Corporate Banking Bank بنك دبي الإسلامي Dubai Islamic بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Corporate Banking has sector-specific focus units which target clients across both private and public sectors. Corporate Banking manages relationships (including sovereigns/ GRES, large corporates, middle market, contracting finance and real estate finance companies) and is instrumental in leveraging its client relationships to cross-sell other products offered by DIB, including investment banking and treasury services. Investment Banking DIB's Investment Banking business is primarily responsible for management of DIB's proprietary investment portfolios, strategic stakes and international operations and expansion. The business group provides advisory and related services to DIB's corporate clients both within UAE and across borders. Treasury Treasury offers a comprehensive range of products backed by DIB's expert understanding of local and international markets. Its principal customers are corporate clients, financial institutions, high net worth individuals, SME companies and similar businesses. It is responsible for managing DIB's liquidity requirements, fixed income portfolio and capital markets funding. 32#33DIB Debt Capital Markets - Deal Experience Select Sovereign and Supranational Agency Transactions بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Republic of Philippines USD 1,000,000,000 5.045% 5.5yr Sukuk JLM & Bookrunner Nov 2023 يك نهى الإسلامي D.tais : Banc Republic Philippines able to of was tighten pricing by 35 bps, on the back of a orderbook in excess of USD 4.9 billion. Republic of Indonesia USD 2,000,000,000 USD 1,000mn 5.40% 5yr USD 1,000mn 5.60% 10yr JLM & Bookrunner Nov 2023 يك نهى الإسلامي Cutism: Ban The Republic received resounding support and resilient demand for its latest offering, garnering a final combined order book of over US$5.6 billion, representing oversubscription rate of more than 2.8x. an Government of Sharjah USD 750,000,000 6.092% 10.5yr sukuk Dealer, JLM & Bookrunner September 2023 يك نهى الإسلامي Dubai ismi: Banc of Government Sharjah was able to tighten pricing by 30ps, on the back of a orderbook in excess of USD 3.6 billion. IsDB On Thursday, 26th September, The Islamic Development Bank successfully priced a Islamic Development Bank USD 1.75 billion 5-year US$ 1,750,000,000 RegS Sukuk at 4.906%. Syndicated Club Transactions Saudi Electricity Company USD 3,000,000,000 stc Saudi Telecom Company USD 1,600,000,000 AVILEASE Avi Lease USD 1,100,000,000 TAWAL Telecommunications Towers Company USD 1,100,000,000 Aaa/AAA/AAA 4.906% due 2028 Listed on Euronext Dublin, Nasdaq Dubai Joint Lead Manager and Bookrunner Sep 2023 The transaction marked ISDB's Second sukuk issuance in 2023. The transaction was well diversified transaction underpinned by demand coming from Middle East while there was also substantial pick-up from Asian & European investors. يك نهى الإسلامي Dubai ismi: Ban Green Sukuk MLA & Bookrunner بنك دبي الإسلامي Oct 2023 Dubai Islamic Bank MLA & Sole Arranger MLA Sep 2023 بنك دبي الإسلامي Dubai Islamic Bank Sep 2023 بنك دبي الإسلامي Dubai Islamic Bank MLA & Bookrunner Aug 2023 بنك دبي الإسلامي Dubai Islamic Bank TECOM GROUP TECOM USD 2,071,000,000 ME Rex L Merex Investment USD 463,000,000 DUBAI ASSET MANAGEMENT Dubai Asset Management USD 545,000,000 DP WORLD DP World USD 3,000,000,000 MLA & Bookrunner بنك دبي الإسلامي June 2023 Dubai Islamic Bank MLA & Bookrunner بنك دبي الإسلامي June 2023 Dubai Islamic Bank MLA & Bookrunner MLA & Bookrunner May 2023 بنك دبي الإسلامي Dubai Islamic Bank Jan 2023 بنك دبي الإسلامي Dubai Islamic Bank 33#34DIB Debt Capital Markets - Deal Experience GRE and Corporate Transactions in 2023 DAMAC Damac Real Estate Development Limited USD 300,000,000 8.375% 3.5yr Sukuk JLM& Bookrunner DP WORLD المراعي Energy Development Oman USD 750,000,000 5.233% 10yr Sukuk JLM & Bookrunner DP World USD1,500,000,000 5.50% Green 10yr Sukuk Joint Lead Manager USD 1,000,000,000 5.944% 10yr Sukuk Joint Lead Manager SOBHA REALTY بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Almarai Almarai Company PNC Investment / Sobha Realty USD 300,000,000 8.75% 5NC3 Sukuk Global Coordinator, JLM & Bookrunner Majid Al Futtaim Properties USD 500,000,000 5.00% 10yr sukuk JLM & Bookrunner بنك بي السلمي بنك نبي السلمي Oct 2023 ينك هي السلمي Dubai Islamic Bank Sep 2023 Dubai Islamic Bank Sep 2023 ينك بي السلمي Dubai Islamic Bank Jul 2023 Dubai Islamic Bank J ALDAR Aldar Investment Properties USD 500,000,000 4.875% 10yr sukuk JLM & Bookrunner DAMAC DAMAC Real Estate Development USD 500,000,000 7.750% 3yr Sukuk JLM & Bookrunner May 2023 لك مين الإسلامي Dubai Islamic Eark ينك بني الإسلامي April 2023 Dubai is amic Bank Select Financial Institutions Transactions in 2023 بنك أبوظبي الأول Dubai Islamic Bank يلك مهني السلمي Ziraat Bankası Ziraat katilim bank US$ 500,000,000 USD 1,000,000,000 9.375% 3yr sukuk JLM& Bookrunners Oct 2023 يك نهى الإسلامي Dubai Islamic Bank 4.80% 5.5 yr Sukuk JLM & Bookrunner يك نبي الإسلامي Dubai: Banc Feb 2023 Cubism: Banc الإمارات الإسلامي EMIRATES ISLAMIC Emirates Islamic Bank AED 1,000,000,000 5.05% 3yr Sukuk JLM & Bookrunner Feb 2023 بكه نهى الإسلامي Dubai ismi: Ban FAB First Abu Dhabi Bank First Abu Dhabi Bank USD 500,000,000 4.581% 5yr Sukuk JLM & Bookrunner Jan 2023 يك نبي الإسلامي Dubai sami: Banc Green Sukuk Sustainable / Sustainability-linked Sukuk Jul 2023 ينك تبني السلمي Dubai Islamic Bank May 2023 ملك بني الإسلامي Cube Blank Bank 34#35Select Award & Accolades بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew Emirates Institute for Banking and Financial Studies Dubai Islamic Bank was recognized for its efforts in the Emiratisation domain Forbes ME DIB ranked 15th amongst Top 100 Companies in the Middle East 2021 Finnovex Middle East Awards 2021 Excellence in Innovation Award- Islamic Banking GCC GOV Youth Empowerment 2022 MEA Finance Banking Technology Awards Organization of the Year for Youth Empowerment in Banking and Finance Best Digital Innovation in Islamic Banking of the Year Best Islamic FinTech Solutions Implementation - rabbit by Dubai Islamic Bank Euromoney Awards for Excellence 2023 Best Islamic Bank in the UAE Best Islamic Bank in the Middle East 16th Annual Best Deal & Solution Awards Best Sovereign Bond & Best Green Sukuk of the year 2022 Islamic Finance News Awards 2021 2022 MEBIS+ Bank Awards 2021 Forbes ME Islamic Finance News Awards MEA Finance Banking Technology Awards 2023 2023 Islamic Finance News Awards . • Best Islamic Retail Bank Commodity Murabahah / Tawarruq Deal of the Year Indonesia Deal of the Year Mudarabah Deal of the Year Perpetual Deal of the Year • UAE Deal of the Year • • Best Islamic Bank in Kenya (DIB Kenya) Structured Finance Deal of the Year (DIB Pakistan) Women Empowerment Excellence Award DIB ranked amongst Top 100 Companies in ⚫ the Middle East 2022 Overall Deal Of The Year Saudi Arabia Deal Of The Year Best Islamic Bank - UAE • Best Islamic Retail Bank Turkey Deal Of The Year • Hybrid Deal Of The Year Best Islamic Bank - DIB Kenya Sovereign & Multilateral Deal Of The Year Kuwait Deal Of The Year Best Corporate Payments Service Most Innovative Islamic Bank Best Overall Islamic Bank in UAE • Best Analytics System Best Corporate Bank in UAE (Dubai Islamic Bank and GBM) . Best Overall Islamic Bank in Kenya • Best Investment Bank in Kenya • Best Innovation in Best Corporate Bank in Kenya • User Experience • • • • Most Innovative Bank in Kenya Syndicated Deal of the Year Turkey Deal of the Year Corporate Finance Deal of the Year Pakistan Deal of the Year Best Overall Islamic Bank 35#36THANK YOU! Our latest financial information, events and announcements can now be accessed by downloading DIB Investor Relations App: Available on the App Store ANDROID APP ON Google play You may also contact us as follows: 4 P. O. Box: 1080, Dubai, UAE ☎ +971 4 2075 454 [email protected] www.dib.ae/about-us/investor-relations -D Google play *WINNER Islamic Business & Finance Best Investor Relations Available on the App Store بنك دبي الإسلامي Dubai Islamic Bank #Ready For TheNew 36