Interim report
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Dubai Islamic Bank P.J.S.C. Review report and condensed consolidated interim financial information for the nine-month period ended 30 September 2026
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Dubai Islamic Bank P.J.S.C. Review report and condensed consolidated interim financial information (Unaudited) for the nine-month period ended 30 September 2026 Pages Report on review of condensed consolidated interim financial information 1 - 2 Condensed consolidated interim statement of financial position 3 Condensed consolidated interim statement of profit or loss 4 Condensed consolidated interim statement of comprehensive income 5 Condensed consolidated interim statement of changes in equity 6 Condensed consolidated interim statement of cash flows 7 - 8 Notes to the condensed consolidated interim financial information 9 - 31
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KPMG Lower Gulf Limited The Offices 5 at One Central Level 4, Office No: 04.01 Sheikh Zayed Road, P.O. Box 3800 Dubai, United Arab Emirates Tel. +971 (4) 4030300, www.kpmg.com/ae © 2026 KPMG Lower Gulf Limited, licensed in the United Arab Emirates and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. 1 To the Board of Directors of Dubai Islamic Bank PJSC Introduction We have reviewed the accompanying 30 September 2026 condensed consolidated interim financial information of Dubai Islamic Bank PJSC (the Bank) and its subsidiaries (the Group), consisting of: the condensed consolidated interim statement of financial position as at 30 September 2026; the condensed consolidated interim statement of profit or loss for the three-month and nine- month periods ended 30 September 2026; the condensed consolidated interim statement of comprehensive income for the three-month and nine-month periods ended 30 September 2026; the condensed consolidated interim statement of changes in equity for the nine-month period ended 30 September 2026; the condensed consolidated interim statement of cash flows for the nine-month period ended 30 September 2026; and notes to the condensed consolidated interim financial information. Management is responsible for the preparation and presentation of this condensed consolidated interim financial information in accordance with IAS 34, Interim Financial Reporting. Our responsibility is to express a conclusion on this condensed consolidated interim financial information based on our review.
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Dubai Islamic Bank PJSC Independent Auditors Report on Review of Condensed Consolidated Interim Financial Information 30 September 2026 © 2026 KPMG Lower Gulf Limited, licensed in the United Arab Emirates and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. 2 Scope of Review We conducted our review in accordance with the International Standard on Review Engagements 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of condensed consolidated interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying 30 September 2026 condensed consolidated interim financial information is not prepared, in all material respects, in accordance with IAS 34, Interim Financial Reporting. KPMG Lower Gulf Limited Maher AlKatout Registration No.: 5453 Dubai, United Arab Emirates Date:
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Dubai Islamic Bank P.J.S.C. 4 Condensed consolidated interim statement of profit or loss (Unaudited) for the nine-month period ended 30 September 2026 Three-month period ended 30 September Nine-month period ended 30 September Note 2026 AED’000 2025 AED’000 2026 AED’000 2025 AED’000 NET INCOME Income from Islamic financing and investing transactions 5,262,565 5,049,642 15,497,152 14,344,437 Commissions, fees and foreign exchange income 434,343 505,383 1,340,648 1,437,192 Income from other investments measured at fair value, net 2,314 3,970 6,510 13,354 Income from properties held for development and sale, net 98,806 142,310 334,962 365,197 Income from investment properties 33,668 45,109 113,370 425,845 Share of profit from associates and joint ventures 140,550 98,512 333,288 342,290 Other income 171,935 175,142 957,185 445,526 ————— ————— ————— ————— Total income 6,144,181 6,020,068 18,583,115 17,373,841 Less: depositors’ and sukuk holders’ share of profit (3,006,319) (2,716,740) (8,650,716) (7,698,003) ————— ————— ————— ————— Net income 3,137,862 3,303,328 9,932,399 9,675,838 ————— ————— ————— ————— OPERATING EXPENSES Personnel expenses (373,630) (579,534) (1,534,903) (1,652,376) General and administrative expenses (366,182) (322,146) (1,049,702) (921,409) Depreciation of investment properties (13,002) (13,464) (39,670) (41,454) Depreciation of property and equipment (62,840) (51,202) (162,642) (158,391) ————— ————— ————— ————— Total operating expenses (815,654) (966,346) (2,786,917) (2,773,630) ————— ————— ————— ————— Net operating income before impairment charges 2,322,208 2,336,982 7,145,482 6,902,208 Impairment charges, net 18 (120,750) (35,559) (610,048) (291,787) ————— ————— ————— ————— Net profit for the period before income tax expense 2,201,458 2,301,423 6,535,434 6,610,421 Income tax expense 19.1 (330,089) (350,518) (927,757) (929,027) ————— ————— ————— ————— Net profit for the period 1,871,369 1,950,905 5,607,677 5,681,394 ========= ========= ========= ========= Attributable to: Owners of the Bank 1,799,656 1,863,006 5,371,641 5,460,706 Non-controlling interests 71,713 87,899 236,036 220,688 ————— ————— ————— ————— Net profit for the period 1,871,369 1,950,905 5,607,677 5,681,394 ========= ========= ========= ========= Basic and diluted earnings per share (AED per share) 20 0.25 0.26 0.72 0.72 ========= ======== ========= ========= The notes on pages 9 to 31 form an integral part of the condensed consolidated interim financial information.
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Dubai Islamic Bank P.J.S.C. 5 Condensed consolidated interim statement of comprehensive income (Unaudited) for the nine-month period ended 30 September 2026 Three-month period ended 30 September Nine-month period ended 30 September 2026 AED’000 2025 AED’000 2026 AED’000 2025 AED’000 Net profit for the period 1,871,369 1,950,905 5,607,677 5,681,394 ———— ———— ———— ———— Other comprehensive income / (loss) items Items that will not be reclassified subsequently to profit or loss: Fair value gain / (loss) on other investments carried at FVTOCI, net (13,663) (50,312) (26,068) 669 Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations, net (31,977) (226,179) (175,215) (333,834) Fair value gain / (loss) on sukuk investment carried at FVTOCI, net (1,956) 3,925 (2,261) 7,577 ———— ———— ———— ———— Other comprehensive loss for the period (47,596) (272,566) (203,544) (325,588) ———— ———— ———— ———— Total comprehensive income for the period 1,823,773 1,678,339 5,404,133 5,355,806 ======= ======= ======= ======= Attributable to: Owners of the Bank 1,761,042 1,592,129 5,178,119 5,135,740 Non-controlling interests 62,731 86,210 226,014 220,066 ———— ———— ———— ———— Total comprehensive income for the period 1,823,773 1,678,339 5,404,133 5,355,806 ======= ======= ======= ======= The notes on pages 9 to 31 form an integral part of the condensed consolidated interim financial information.
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Dubai Islamic Bank P.J.S.C. 6 Condensed consolidated interim statement of changes in equity (Unaudited) for the nine-month period ended 30 September 2026 ------------------------ Equity attributable to owners and Sukuk-holders of the Bank ---------------------------------- Share capital Tier 1 Sukuk Other reserves and treasury shares Investments fair value reserve Exchange translation reserve Retained earnings Total Non- controlling interests Total equity AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 Balance at 1 January 2025 7,240,744 10,100,750 15,874,668 (1,267,060) (2,028,690) 19,904,386 49,824,798 3,028,081 52,852,879 Net profit for the period - - - - - 5,460,706 5,460,706 220,688 5,681,394 Other comprehensive gain / (loss) for the period - - - 8,868 (333,834) - (324,966) (622) (325,588) -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- Total comprehensive income / (loss) for the period - - - 8,868 (333,834) 5,460,706 5,135,740 220,066 5,355,806 -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- Transaction directly in equity: Dividend (note 26) - - - - - (3,252,200) (3,252,200) (120,379) (3,372,579) Zakat adjustment - - - - - - - (4,431) (4,431) Tier 1 Sukuk redemption - (2,754,750) - - - - (2,754,750) - (2,754,750) Tier 1 Sukuk profit distribution - - - - - (250,223) (250,223) - (250,223) Transfer on disposal of investments carried at FVTOCI - - - 22,543 - (22,543) - - - Regulatory credit risk reserve - - (270,000) - - 270,000 - - - Others - - - - - 2,404 2,404 14,889 17,293 -------------------- -------------------- ---------------------- ---------------------- ---------------------- ---------------------- --------------------- -------------------- --------------------- Balance at 30 September 2025 7,240,744 7,346,000 15,604,668 (1,235,649) (2,362,524) 22,112,530 48,705,769 3,138,226 51,843,995 ======= ======= ======== ======== ======== ======== ======== ======= ======== Balance at 1 January 2026 7,240,744 7,346,000 16,476,768 (1,196,843) (2,371,129) 22,412,432 49,907,972 3,227,512 53,135,484 Net profit for the period - - - - - 5,371,641 5,371,641 236,036 5,607,677 Other comprehensive loss for the period - - - (18,307) (175,215) - (193,522) (10,022) (203,544) -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- Total comprehensive income / (loss) for the period - - - (18,307) (175,215) 5,371,641 5,178,119 226,014 5,404,133 -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- Transaction directly in equity: Dividend (note 26) - - - - - (2,529,473) (2,529,473) (120,379) (2,649,852) Zakat adjustment - - - - - - - (4,930) (4,930) Tier 1 Sukuk issuance - 3,673,000 - - - - 3,673,000 - 3,673,000 Tier 1 Sukuk redemption - (3,673,000) - - - - (3,673,000) - (3,673,000) Tier 1 Sukuk profit distribution - - - - - (164,137) (164,137) - (164,137) Transfer on disposal of investments carried at FVTOCI - - - 151,427 - (151,427) - - - Regulatory credit risk reserve - - 30,000 - - (30,000) - - - Others - - - - - 147 147 (11,114) (10,967) -------------------- -------------------- ---------------------- ---------------------- ---------------------- ---------------------- --------------------- -------------------- --------------------- Balance at 30 September 2026 7,240,744 7,346,000 16,506,768 (1,063,723) (2,546,344) 24,909,183 52,392,628 3,317,103 55,709,731 ======= ======= ======== ======== ======== ======== ======== ======= ======== The notes on pages 9 to 31 form an integral part of the condensed consolidated interim financial information.
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Dubai Islamic Bank P.J.S.C. 7 Condensed consolidated interim statement of cash flows (Unaudited) for the nine-month period ended 30 September 2026 The notes on pages 9 to 31 form an integral part of the condensed consolidated interim financial information. Nine-month period ended 30 September 2026 2025 AED’000 AED’000 Operating activities Profit for the period before income tax expense 6,535,434 6,610,421 Adjustments for: Share of profit from associates and joint ventures (333,288) (342,290) Dividend income (6,510) (13,354) Gain on sale of investments in Sukuk (36,308) (344) Gain on disposal of investment properties (14,962) (330,024) Depreciation of property and equipment 162,642 158,391 (Gain) / loss on disposal of property and equipment (195) 132 Depreciation of investment properties 39,670 41,454 Provision for employees’ end-of-service benefits 2,034 31,279 Amortization of Sukuk premium - (668) Amortization of intangible assets - 5,273 Impairment charge for the period, net 610,048 291,787 ---------------------- ---------------------- Operating cash flow before changes in operating assets and liabilities 6,958,565 6,452,057 Decrease in due from banks and financial institutions 988,250 - Increase in Islamic financing and investing assets (25,649,006) (36,472,172) Decrease / (increase) in receivables and other assets 511,171 (2,142,539) Decrease / (increase) in property held for development and sale 71,509 (135,170) Increase in customers’ deposits 3,239,497 53,421,075 Increase / (decrease) in due to banks and financial institutions 12,353,878 (2,360,450) Increase in payables and other liabilities 437,636 835,246 ---------------------- ---------------------- Cash (used in) / generated from operations (1,088,500) 19,598,047 Employees’ end-of-service benefits paid (9,461) (19,102) Tax paid (67,780) (759,436) ---------------------- ---------------------- Net cash (used in) / generated from operating activities (1,165,741) 18,819,509 ---------------------- ---------------------- Investing activities Addition in investment in Sukuk (7,241,168) (17,895,752) Proceeds from disposal / maturity of investment in Sukuk 12,839,469 4,932,465 Purchase of investment properties (33,030) (34,054) Proceeds from disposal of investment properties 80,376 424,646 Purchase of property and equipment, net (442,453) (229,688) Purchase of other investments measured at fair value (5,559) - Proceeds from other investments measured at fair value 37,374 38,095 Dividend received 6,510 13,354 Addition in investments in associates and joint ventures (138,430) (195,199) Capital repayment in investment in associates and joint ventures 503,490 - Dividend received from investments in associates and joint ventures 102,616 4,313 ---------------------- ---------------------- Net cash generated from / (used in) investing activities 5,709,195 (12,941,820) ---------------------- —————
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Dubai Islamic Bank P.J.S.C. 8 Condensed consolidated interim statement of cash flows (Unaudited) for the nine-month period ended 30 September 2026 The notes on pages 9 to 31 form an integral part of the condensed consolidated interim financial information. . Nine-month period ended 30 September 2026 2025 AED’000 AED’000 Financing activities Repayment of Sukuk financing instruments (8,447,947) (2,754,750) Tier 1 Sukuk issuance 3,673,000 - Tier 1 Sukuk redemption (3,673,000) (2,754,750) Tier 1 Sukuk profit distribution (164,137) (250,223) Tier 1 Sukuk issuance cost (7,940) (608) Dividend paid (2,649,852) (3,372,579) ---------------------- ---------------------- Net cash used in financing activities (11,269,876) (9,132,910) ---------------------- ---------------------- Net decrease in cash and cash equivalents (6,726,422) (3,255,221) Cash and cash equivalents at the beginning of the period 40,166,739 32,342,578 Effect of exchange rate changes on the balance of cash held in foreign currencies (8,152) (34,978) ---------------------- ---------------------- Cash and cash equivalents at the end of the period (note 21) 33,432,165 29,052,379 ========= =========
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Dubai Islamic Bank P.J.S.C. Notes to the condensed consolidated interim financial information for the nine-month period ended 30 September 2026 9 1. General information Dubai Islamic Bank (Public Joint Stock Company) (the “Bank”) was incorporated by an Amiri Decree issued on 29 Safar 1395 Hijri, corresponding to 12 March 1975 by His Highness, the Ruler of Dubai, to provide banking and related services based on Islamic Sha ria principles. It was subsequently registered under the Commercial Companies Law number 8 of 1984 (as amended) as a Public Joint Stock Company . The condensed consolidated interim financial information combine s the activities of the Bank and its subsidiaries as disclosed in Note 2 8 to these condensed consolidated interim financial information (together referred to as the “Group”). The Bank is listed on the Dubai Financial Market (Ticker: “DIB”). The Group is primarily engaged in corporate, retail and investment banking activities in accordance with Islamic Sharia principles under the guidance of Internal Sharia Supervision Committee (“ISSC”) and Higher Sharia Authority of Central Bank of UAE (“HSA”) and carries out its operations through its local branches and overseas subsidiaries. The principal activities of the Group en tities are described in note 2 8 (a) to the condensed consolidated interim financial information. The registered head office of the Bank is at P.O. Box 1080, Dubai, United Arab Emirates (“U.A.E.”). 2. Application of new and revised International Financial Reporting Standards (“IFRS”) 2.1 New and revised IFRS applied with no material effect on the condensed consolidated interim financial information The following new and revised IFRS, which became effective for annual periods beginning on or after 1 January 2026, have been adopted in the condensed consolidated interim financial information. The application of these revised IFRS has not had any material impact on the amounts reported for the current and prior years but may affect the accounting for future transactions or arrangements. ▪ Amendment to IFRS 9 and IFRS 7 relating to classification and measurement of financial instrument s. ▪ Annual improvements to IFRS Accounting Standards 2.2 New and revised IFRSs in issue but not yet effective The Group has not early adopted the following new and revised standards that have been issued but are not yet effective. The management is in the process of assessing the impact of the new requirements. New and revised IFRS Effective for annual periods beginning on or after IFRS 18 Presentation and Disclosures in Financial Statements 01 January 2027 Amendment to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures relating to treatment of sale or contribution of assets between an investor and its associate or joint venture. Effective date deferred indefinitely. Management anticipates that these new standards, interpretations and amendments will be adopted in the Group’s financial statements for the period of initial application.
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Dubai Islamic Bank P.J.S.C. Notes to the condensed consolidated interim financial information for the nine-month period ended 30 September 2026 10 3. Basis of preparation 3.1 Statement of compliance The condensed consolidated interim financial information is prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting ” issued by the International Accounting Standards Board and applicable requirements of the laws of the U.A.E. , including the UAE Federal Law No. 32 of 2021 as amended and the Decretal Federal Law No. (6) of 2025. The condensed consolidated interim financial information does not include all the information required for a complete set of IFRS consolidated financial statements and should be read in conjunction with the Group’s audited consolidated financial statements for the year ended 31 December 2025. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group’s financial position and performance since the last annual audited consolidated financial statements as at and for the year ended 31 December 2025. The accounting policies applied by the Group in preparation of the condensed consolidated interim financial information are consistent with those applied by the Group in its annual consolidated financial statements as at and for the year ended 31 December 2025. 3.2 Judgments and estimates The preparation of the condensed consolidated interim financial information requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, equity, income and expense. Actual amount may differ from these estimates. In preparing the condensed consolidated interim financial information, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimates uncertainty were the same as those which were applied to the audited consolidated financial statements as at and for the year ended 31 December 2025. 3.2.1 Amounts arising from ECL In determining the expected credit loss (“ECL”) for the period ended 30 September 2026, the Group considered the potential effects of the ongoing geopolitical developments in the region, based on the best available information and measures under Resilience Program issued by the Central Bank of UAE. Macroeconomic factors, forward looking information and multiple scenarios IFRS 9 requires an unbiased and probability weighted estimate of credit losses by evaluating a range of possible outcomes that incorporates forecasts of future economic conditions. Macroeconomic variables and forward-looking information are required to be incorporated into the measurement of ECL as well as the determination of whether there has been a significant increase in credit risk since origination. Measurement of ECLs at each reporting period should reflect reasonable and supportable information at the reporting date about past events, current conditions and forecasts of future economic conditions. The inputs and models used for calculating ECLs may not always capture all characteristics of the market at the date of the consolidated financial statements. To reflect this, qualitative adjustments or overlays are occasionally made as temporary adjustments when such differences are significantly material. When estimating the ECLs, the Bank considers three scenarios (a base case, an upside and a downside) with a weightage of 40%, 30% and 30% respectively. Each of these is associated with different PDs. When relevant, the assessment of multiple scenarios also incorporates how defaulted financing are expected to be recovered, including the probability that the financing will cure and the value of collateral or the amount that might be received for selling the asset. In measuring Expected Credit Losses (ECL) as at 30 September 2026, the Group applies base, upside and downside scenarios. The updated ECL models incorporate the effects of the more recent macroeconomic variables, with the baseline already reflecting the impact of regional conflict.
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Dubai Islamic Bank P.J.S.C. Notes to the condensed consolidated interim financial information for the nine-month period ended 30 September 2026 11 3.2 Judgments and estimates (continued) 3.2.1 Amounts arising from ECL (continued) The most recent macroeconomic variables are also consistent with the range of macroeconomic views available from external sources, accordingly, support reverting to symmetric scenario weights of 30% for the upside, 40% for the base case and 30% for the downside. The Group will continue to monitor regional developments, market data and portfolio performance and reassess its assumptions, model inputs and overlays as appropriate. Actual outcomes may differ from the estimates applied at the reporting date. DIB Group continues to maintain active business continuity frameworks and rigorous risk management practices to safeguard its operations. In response to these conditions, the Central Bank of the UAE (“CBUAE”) introduced the Financial Institution Resilience Package (“FIRP”) on 18 March 2026. During the period the Group provided formal relief measures under the FIRP, granting payment deferrals to certain corporate customers . Assessment of significant increase in credit risk Under IFRS 9, financial assets are transferred from Stage 1 to Stage 2 where there has been a significant increase in credit risk since initial recognition. The assessment of significant increase in credit risk is based on changes in the risk of default over the expected life of the exposure and incorporates both quantitative and qualitative information. As the current geopolitical uncertainty remains uncertain, the Group continues to closely monitor all portfolios, including retail in order to assess whether any financial difficulties experienced by customers are temporary, arising from the current circumstances, or whether they are indicative of a more sustained deterioration in creditworthiness. The Group remains fully committed to participating in the CBUAE led Resilience Program, reflecting its determination to support customers through periods of uncertainty and to contribute to the stability and resilience of the UAE economy. As at 30 September 2026, payment deferral programs, comprising principal and profit deferrals in accordance with Resilience Program’s requirements, were under implementation. No significant payment deferrals were granted during the period, as these programs were in the initial phase of operational readiness and subject to customer eligibility and demand. The Group continues to reassess the long-term viability of affected borrowers, and stage classification is determined in accordance with IFRS 9, the Credit Risk Management Standards (“CRMS”), the Group’s internal policies and applicable CBUAE guidelines.
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Dubai Islamic Bank P.J.S.C. Notes to the condensed consolidated interim financial information for the nine-month period ended 30 September 2026 12 4. Cash and balances with central banks 4.1 Analysis by category Unaudited Audited 30 September 31 December 2026 2025 Note AED’000 AED’000 Cash on hand 2,244,432 2,230,239 Balances with the central banks: Balances and reserve requirements with central banks 4.3 17,270,718 18,582,894 International Murabaha with the Central Bank of the U.A.E. 10,063,078 16,056,853 ––––––––– ––––––––– Total 29,578,228 36,869,986 ======== ======== Balances with Central Banks are in stage 1 as at 30 September 2026 and 31 December 2025. 4.2 Analysis by geography Unaudited Audited 30 September 31 December 2026 2025 AED’000 AED’000 Within the U.A.E. 29,191,155 36,515,157 Outside the U.A.E. 387,073 354,829 ––––––––– ––––––––– Total 29,578,228 36,869,986 ======== ======== 4.3 Statutory cash reserve requirements The reserve requirements are kept with the Central Banks of the U.A.E., Pakistan and Kenya in the respective local currencies and US Dollar. These reserves are available for use in the Group’s day to day operations under specified conditions. The level of reserve required by Central Bank of the UAE changes every 14 days whereas for other jurisdictions changes every month in line with the requirements of the respective central banks’ directives. 5. Due from banks and financial institutions 5.1 Analysis by category Unaudited Audited 30 September 31 December 2026 2025 AED’000 AED’000 Current accounts 2,785,412 2,369,216 Wakala deposits 1,071,443 816,805 Treasury Placement (Commodity Murabaha) - short term 1,101,900 2,203,800 Less: Provision for impairment (2,918) (2,918) ––––––––––– ––––––––––– Total 4,955,837 5,386,903 ======== ======== 5.2 Analysis by geography Unaudited Audited 30 September 31 December 2026 2025 AED’000 AED’000 Within the U.A.E. 2,225,189 1,725,563 Outside the U.A.E. 2,730,648 3,661,340 ––––––––––– ––––––––––– Total 4,955,837 5,386,903 ======== ======== Due from banks and financial institutions are in stage 1 at 30 September 2026 and 31 December 2025.
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Dubai Islamic Bank P.J.S.C. Notes to the condensed consolidated interim financial information for the nine-month period ended 30 September 2026 13 6. Islamic financing and investing assets, net 6.1 Analysis by category Unaudited Audited 30 September 31 December 2026 2025 Note AED’000 AED’000 Islamic financing assets Vehicles Murabaha 19,357,714 16,549,650 Commodity Murabaha - long term 107,687,423 102,625,508 Other Murabaha 5,753,186 2,429,564 ----------------------- -------------------- Total Murabahas 132,798,323 121,604,722 Ijarah 36,774,630 35,080,426 Home Finance Ijarah 40,193,054 33,530,338 Personal Finance 35,316,599 29,692,635 Istisna’a & Forward Ijarah 1,001,178 473,798 Credit/covered cards 4,686,394 4,234,931 ----------------------- -------------------- 250,770,178 224,616,850 Less: deferred income (5,671,757) (5,440,718) ----------------------- -------------------- Total Islamic financing assets 245,098,421 219,176,132 ----------------------- -------------------- Islamic investing assets Musharaka 3,647,397 4,241,364 Mudaraba 8,981,766 8,609,837 Wakala 35,099,767 35,655,350 ----------------------- -------------------- Total Islamic investing assets 47,728,930 48,506,551 ----------------------- -------------------- Gross Islamic financing and investing assets at amortized cost 292,827,351 267,682,683 Less: provisions for impairment 6.3 (6,025,505) (5,915,075) ----------------------- ---------------------- Islamic financing and investing assets at amortized cost, net 286,801,846 261,767,608 Islamic financing and investing assets measured at FVTPL 291,534 287,531 ---------------------- ---------------------- Total Islamic financing and investing assets, net 287,093,380 262,055,139 ========= =========
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Dubai Islamic Bank P.J.S.C. Notes to the condensed consolidated interim financial information for the nine-month period ended 30 September 2026 14 6. Islamic financing and investing assets, net (continued) 6.2 Carrying value of exposure by internal risk rating category and by stage As at 30 September 2026 (Unaudited) Gross book values (AED’000) Expected credit loss (AED’000) Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total Low 104,827,219 - - - 104,827,219 39,230 - - - 39,230 Moderate 164,494,494 6,346,413 - - 170,840,907 1,067,845 308,860 - - 1,376,705 Fair 5,681,001 4,368,953 - - 10,049,954 207,079 391,072 - - 598,151 Default - - 7,043,100 66,171 7,109,271 - - 3,965,965 45,454 4,011,419 –––––––––– –––––––––– ––––––––– ––––––––– –––––––––– ––––––––– ––––––––– –––––––––– ––––––––– –––––––––– Total 275,002,714 10,715,366 7,043,100 66,171 292,827,351 1,314,154 699,932 3,965,965 45,454 6,025,505 ========= ========= ======== ======== ========= ======== ======== ========= ======== ========= As at 31 December 2025 (Audited) Gross book values (AED’000) Expected credit loss (AED’000) Stage 1 Stage 2 Stage 3 POCI Total Stage 1 Stage 2 Stage 3 POCI Total Low 96,907,462 - - - 96,907,462 25,043 - - - 25,043 Moderate 147,427,023 6,490,538 - - 153,917,561 921,588 406,731 - - 1,328,319 Fair 6,084,293 3,606,501 - - 9,690,794 159,032 328,937 - - 487,969 Default - - 6,926,761 240,105 7,166,866 - - 4,053,468 20,276 4,073,744 –––––––––– ––––––––– ––––––––– ––––––––– –––––––––– ––––––––– ––––––––– –––––––––– ––––––––– –––––––––– Total 250,418,778 10,097,039 6,926,761 240,105 267,682,683 1,105,663 735,668 4,053,468 20,276 5,915,075 ========= ======== ======== ======== ========= ======== ======== ========= ======== =========
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Dubai Islamic Bank P.J.S.C. Notes to the condensed consolidated interim financial information for the nine-month period ended 30 September 2026 15 6. Islamic financing and investing assets, net (continued) 6.3 Provision for impairment Note Stage 1 Stage 2 Stage 3 POCI Total 2026 (Unaudited) AED’000 AED’000 AED’000 AED’000 AED’000 Balance at 1 January 1,105,663 735,668 4,053,468 20,276 5,915,075 Net charge during the period 18 211,244 122,456 329,521 25,178 688,399 Transfer to other stages - (196,726) 196,726 - - Write off - - (447,204) - (447,204) Exchange and other adjustments (2,753) 38,534 (166,546) - (130,765) –––––––– –––––––– ––––––––– –––––––– ––––––––– Balance at 30 September 1,314,154 699,932 3,965,965 45,454 6,025,505 ======= ======= ======== ======= ======== Stage 1 Stage 2 Stage 3 POCI Total 2025 (Audited) AED’000 AED’000 AED’000 AED’000 AED’000 Balance at 1 January 791,679 846,164 4,832,180 290,669 6,760,692 Net charge during the year 323,902 13,269 300,271 - 637,442 Transfer to other stages (41,329) (126,528) 167,857 - - Write off - - (1,416,930) (300,393) (1,717,323) Exchange and other adjustments 31,411 2,763 170,090 30,000 234,264 –––––––– –––––––– ––––––––– –––––––– ––––––––– Balance at 31 December 1,105,663 735,668 4,053,468 20,276 5,915,075 ======= ======= ======== ======= ======== 6.4 Analysis by geography Unaudited Audited 30 September 31 December 2026 2025 Note AED’000 AED’000 Within the U.A.E. 245,012,124 221,812,602 Outside the U.A.E. 48,106,761 46,157,612 –––––––––– –––––––––– Total Islamic financing and investing assets 293,118,885 267,970,214 Less: provisions for impairment 6.3 (6,025,505) (5,915,075) –––––––––– –––––––––– Total Islamic financing and investing assets, net 287,093,380 262,055,139 ========= =========
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Dubai Islamic Bank P.J.S.C. Notes to the condensed consolidated interim financial information for the nine-month period ended 30 September 2026 16 7. Investments in Sukuk 7.1 Analysis by geography Unaudited Audited 30 September 31 December 2026 2025 AED’000 AED’000 At amortized cost Within the U.A.E. 24,224,628 27,673,160 Other G.C.C. Countries 40,910,848 39,108,579 Rest of the world 19,175,252 23,809,104 -------------------- -------------------- 84,310,728 90,590,843 Less: provision for impairment (196,014) (222,346) -------------------- -------------------- Total investment at amortized cost 84,114,714 90,368,497 Investment measured at fair value through other comprehensive income 206,688 220,152 Investment measured at fair value through profit or loss 686,945 - -------------------- -------------------- 85,008,347 90,588,649 Total ======== ======== Investments in Sukuk include investments in bilateral Sukuk amounting to AED 2.6 billion as at 30 September 2026 (31 December 2025: AED 2.6 billion). Investment in Sukuk classified at stage 3 at 30 September 2026 amounts to AED 31.6 million (31 December 2025: AED 35.0 million) with the remaining investment classified at Stage 1. 8. Other investments measured at fair value Within the U.A.E. Other G.C.C. countries Rest of the world Total 30 September 2026 (Unaudited) AED’000 AED’000 AED’000 AED’000 Investments measured at fair value through other comprehensive income Quoted instruments 3,553 20,220 3,334 27,107 Unquoted instruments 531,106 21,912 334,644 887,662 ------------------- ----------------- ------------------ ------------------ Total 534,659 42,132 337,978 914,769 ======== ======= ======= ======= Within the U.A.E. Other G.C.C. countries Rest of the world Total 31 December 2025 (Audited) AED’000 AED’000 AED’000 AED’000 Investments measured at fair value through other comprehensive income Quoted instruments 140,616 22,784 6,134 169,534 Unquoted instruments 40,485 23,167 373,413 437,065 -------------------- ----------------- ------------------ ------------------- Total 181,101 45,951 379,547 606,599 ======= ======= ======= =======
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Dubai Islamic Bank P.J.S.C. Notes to the condensed consolidated interim financial information for the nine-month period ended 30 September 2026 17 9. Investment properties Other real estate Investment properties under construction Land Total 30 September 2026 (Unaudited) AED’000 AED’000 AED’000 AED’000 Carrying Amount: Within the U.A.E. 1,847,358 1,223,966 1,236,607 4,307,931 Outside the U.A.E. 139 - 52,666 52,805 ------------------- ------------------- ----------------- -------------------- Total 1,847,497 1,223,966 1,289,273 4,360,736 ======== ======== ======= ======== 31 December 2025 (Audited) Carrying Amount: Within the U.A.E. 1,882,494 1,223,966 1,596,880 4,703,340 Outside the U.A.E. 139 - 52,652 52,791 ------------------ ------------------ ----------------- ------------------- Total 1,882,633 1,223,966 1,649,532 4,756,131 ======== ======== ======= ======== 10. Receivables and other assets Other receivables include overdraft balances that do not meet the definition of Islamic financing and investing assets, net of provision amounting to AED 72.9 million (31 December 2025: AED 46.4 million) in stage 3. 11. Customers’ deposits Unaudited Audited 30 September 31 December 2026 2025 AED’000 AED’000 Current accounts 47,236,104 47,525,138 Saving accounts 62,524,639 62,197,456 Investment deposits (Term deposits based on Mudaraba and Wakala) 212,886,592 209,737,184 Margin accounts 563,003 484,837 Depositors’ investment risk reserve 23,503 22,197 Depositors’ share of profit payable 259,488 217,613 ---------------------- ---------------------- Total 323,493,329 320,184,425 ========= ========= 12. Due to banks and financial institutions Unaudited Audited 30 September 31 December 2026 2025 AED’000 AED’000 Current accounts with banks 39,889 30,261 Investment deposits (Term deposits based on Mudaraba) 14,280,417 1,936,167 ---------------------- ------------------- Total 14,320,306 1,966,428 ========= =========
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Dubai Islamic Bank P.J.S.C. Notes to the condensed consolidated interim financial information for the nine-month period ended 30 September 2026 18 13. Sukuk issued The analysis of the Sukuk instruments issued by the Group is as follows: Expected annual profit rate Maturity 2026 AED’000 2025 AED’000 Listed Sukuk - Irish Stock Exchange / Nasdaq Dubai Sukuk issued by the Bank 2.95% January 2026 - 4,774,947 Sukuk issued by the Bank 1.96% June 2026 - 3,673,000 Sukuk issued by the Bank 2.74% February 2027 2,754,750 2,754,750 Sukuk issued by the Bank 5.49% November 2027 2,754,750 2,754,750 Sukuk issued by the Bank 4.80% August 2028 3,673,000 3,673,000 Sukuk issued by the Bank 5.24% March 2029 3,673,000 3,673,000 Sukuk issued by the Bank 4.57% November 2030 3,673,000 3,673,000 Private placement Sukuk issued by a subsidiary 6M Kibor + 70 bps December 2032 55,544 52,912 Sukuk issued by a subsidiary 3M Kibor + 175 bps December 2028 41,959 41,317 -------------------- ––––––––– Total 16,626,003 25,070,676 ======== ======== 14. Share capital As at 30 September 2026, 7,240,744,377 authorised ordinary shares of AED 1 each ( 2025: 7,240,744,377 ordinary shares of AED 1 each) were fully issued and paid up. 15. Tier 1 Sukuk SPV (“the Issuer”) Date of issuance Discretionary profit rate Callable period Issuance amount Equivalent AED ‘000 ---------------------------------------------- (Unaudited) (Audited) 30 September 2026 31 December 2025 DIB Tier 1 Sukuk (4) Limited November 2020 4.63% per annum paid semi-annually On or after May 2026 - 3,673,000 DIB Tier 1 Sukuk (5) Limited April 2021 3.38% per annum paid semi-annually On or after October 2026 1,836,500 1,836,500 DIB Tier 1 Sukuk ( 6) Limited October 2024 5.25% per annum paid semi-annually On or after April 2030 1,836,500 1,836,500 DIB Tier 1 Sukuk ( 7) Limited June 2026 6.25% per annum paid semi-annually On or after June 2032 3,673,000 - ------------------- ––––––––– 7,346,000 7,346,000 ======== ========
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Dubai Islamic Bank P.J.S.C. Notes to the condensed consolidated interim financial information for the nine-month period ended 30 September 2026 19 15. Tier 1 Sukuk (continued) Tier 1 Sukuk is a perpetual security in respect of which there is no fixed redemption date and constitutes direct, unsecured, subordinated obligations (senior only to share capital) of the Bank subject to the terms and conditions of the Mudaraba Agreement. The Tier 1 Sukuk are listed on the Irish Stock Exchange and Dubai Financial Market / Nasdaq Dubai, callable by the Bank after the “First Call Date” or any profit payment date thereafter subject to certain redemption conditions. The net proceeds of Tier 1 Sukuk are invested by way of Mudaraba with the Bank (as Mudar ib) on an unrestricted co-mingling basis, by the Bank in its general business activities carried out through the Mudaraba Common pool . At the Issuer’s sole discretion, it may elect not to make any Mudaraba profit distributions expected and the event is not considered an event of default. In such event, the Mudaraba profit will not be accumulated but forfeited to the issuer. If the Issuer makes a non-payment election or a non-payment event occurs, then the Bank will not (a) declare or pay any distribution or dividend or make any other payment on, and will procure that no distribution or dividend or other payment is made on ordinary shares i ssued by the Bank, or (b) directly or indirectly redeem, purchase, cancel, reduce or otherwise acquire ordinary shares issued by the Bank. 16. Other reserves and treasury shares Movement of other reserves and treasury shares during the period / year ended 30 September 2026 and 31 December 2025 is as follows: Statutory reserve General reserve Regulatory credit risk reserve Treasury shares Total AED’000 AED’000 AED’000 AED’000 AED’000 2026 (Unaudited) Balance at 1 January 11,465,984 2,350,000 2,692,100 (31,316) 16,476,768 Transfer from retained earnings - - 30,000 - 30,000 -------------------- ----------------- ----------------- ---------------- -------------------- Balance at 30 September 11,465,984 2,350,000 2,722,100 (31,316) 16,506,768 ======== ======= ======= ====== ======== 2025 (Audited) Balance at 1 January 11,465,984 2,350,000 2,090,000 (31,316) 15,874,668 Transfer from retained earnings - - 602,100 - 602,100 ––––––––– –––––––– –––––––– ––––––– ––––––––– Balance at 31 December 11,465,984 2,350,000 2,692,100 (31,316) 16,476,768 ======== ======= ======= ====== ======== The Group holds 13,633,477 treasury shares ( 2025: 13,633,477 shares) amounting to AED 31.3 million (2025: AED 31.3 million).
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Dubai Islamic Bank P.J.S.C. Notes to the condensed consolidated interim financial information for the nine-month period ended 30 September 2026 20 17. Contingent liabilities and commitments The analysis of contingent liabilities and commitments as at 30 September 2026 and 31 December 2025 is as follows: Unaudited 30 September Audited 31 December 2026 2025 AED’000 AED’000 Contingent liabilities: Letters of guarantee 12,425,769 11,383,041 Letters of credit 1,841,773 1,560,251 Undrawn facilities commitments 25,682,399 21,651,684 ---------------------- -------------------- Total contingent liabilities 39,949,941 34,594,976 ---------------------- -------------------- Other commitments: Capital expenditure and others 2,510,532 1,743,762 ---------------------- -------------------- Total other commitments 2,510,532 1,743,762 ---------------------- -------------------- Total contingent liabilities and commitments 42,460,473 36,338,738 ========= ======== 18. Impairment charges, net Impairment charges include net impairment charge on Islamic financing and investing assets amounting to AED 688.4 million (refer note 6.3) (30 September 2025: AED 392.8 million), net charge on other financial assets amounting to AED 19.8 million (30 September 2025: net release AED 78.5 million) and net release on non-financial assets amounting to AED 98.2 million (30 September 2025: AED 22.5 million). 19. Taxation On 9 December 2022, the United Arab Emirates (UAE) Ministry of Finance (MoF) released Federal Decree-Law No 47 of 2022 on the Taxation of Corporations and Businesses, Corporate Tax Law (“CT Law”) to enact a new CT regime in the UAE. The new CT regime became effective for accounting periods beginning on or after 1 June 2023. The Group is subject to CT Law starting 1 January 2024. The taxable income of the entities that are in scope for UAE CT purposes is subject to tax at 9%. The effective tax rate (ETR) for the period ended 30 September 2026 is 14.2% which includes Top -up tax (30 September 2025: 14.1%). The deviation from the statutory tax rate is primarily driven by the geographical mix , Top-up tax and partly offset by certain exempt income and exempt gains under the CT Law in the UAE. Aligning with the OECD’s Global Minimum Tax effort (Pillar Two), the UAE MoF has announced certain amendments to the CT Law introducing a Domestic Minimum Top -Up Tax of 15% for Multinational Enterprises (MNEs) with effect from financial years starting on or after 01 January 2025. The Group is within the scope of Pillar Two legislation and as such is subject to the Pillar Two rules. The Group applies the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes, as provided in the amendments to IAS 12 issued in May 2023. The Group estimates current tax expense related to Pillar Two an amount of AED 327.8 million for the period ended 30 September 2026 (30 September 2025: AED 284.6 million). The Pillar Two impact is in relation to the entities operating in the UAE.
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Dubai Islamic Bank P.J.S.C. Notes to the condensed consolidated interim financial information for the nine-month period ended 30 September 2026 21 19. Taxation (continued) 19.1 Income tax expense Unaudited Unaudited 30 September 30 September 2026 2025 AED’000 AED’000 Current tax 19.2 911,104 926,256 Deferred tax 19.3 16,653 2,771 ------------------ –––––––– Total 927,757 929,027 ======= ======= 19.2 Provision for taxation Unaudited 30 September Audited 31 December 2026 AED’000 2025 AED’000 Balance at 1 January 1,127,301 730,669 Charged during the period 19.1 911,104 1,183,136 Paid during the period (67,780) (786,657) Foreign exchange effect (2,356) 153 ----------------- –––––––– Total 1,968,269 1,127,301 ======= ======= 19.3 Deferred tax asset Unaudited 30 September Audited 31 December 2026 AED’000 2025 AED’000 Balance at 1 January 123,533 126,997 Expense during the period 19.1 (16,653) (11,976) Others (148) 8,512 --------------- ––––––– Total 106,732 123,533 ====== ======
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Dubai Islamic Bank P.J.S.C. Notes to the condensed consolidated interim financial information for the nine-month period ended 30 September 2026 22 20. Basic and diluted earnings per share Basic and diluted earnings per share are calculated by dividing the profit for the period attributable to owners of the Bank, net of directors’ remuneration and profit attributable to Tier 1 Sukuk-holders by the weighted average number of shares outstanding during the period as follows: Three-month period ended 30 September Nine-month period ended 30 September 2026 AED’000 2025 AED’000 2026 AED’000 2025 AED’000 Profit for the period attributable to the owners of the Bank 1,799,656 1,863,006 5,371,641 5,460,706 Profit attributable to Tier 1 Sukuk-holders - - (164,137) (250,223) -------------------- ––––––––– -------------------- ––––––––– 1,799,656 1,863,006 5,207,504 5,210,483 ======== ======== ======== ======== Weighted average number of shares outstanding during the period (‘000) 7,227,111 7,227,111 7,227,111 7,227,111 ======== ======== ======== ======== Basic and diluted earnings per share (AED per share) 0.25 0.26 0.72 0.72 ======== ======== ======== ======== 21. Cash and cash equivalents Unaudited 30 September Unaudited 30 September 2026 2025 AED’000 AED’000 Cash and balances with central banks 29,578,228 25,577,791 Due from banks and financial institutions 4,955,837 3,474,588 -------------------- -------------------- 34,534,065 29,052,379 Less: Balances with Banks and financial institutions over three months (1,101,900) - --------------------- -------------------- Total 33,432,165 29,052,379 ========== ==========
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Dubai Islamic Bank P.J.S.C. Notes to the condensed consolidated interim financial information for the nine-month period ended 30 September 2026 23 22. Segmental information 22.1 Reportable segments Reportable segments are identified on the basis of internal reports about the components of the Group that are regularly reviewed by the Group’s chief operating decision maker in order to allocate resources to the segment and to assess its performance. The Group’s reportable segments are organised into below major segments as follows: - Consumer banking: Principally handling individual customers’ deposits, providing consumer Murabaha, Salam, Home Finance, Ijarah, Credit Cards and funds transfer facilities, priority banking and wealth management. - Corporate banking: Principally handling financing, other credit facilities, deposits, current accounts, cash management and risk management products for corporate and institutional customers. - Commercial banking: Principally handling financing, other credit facilities, deposits, current accounts, cash management and risk management products for emerging corporate and SME customers. - Treasury: Principally responsible for managing the Bank’s overall liquidity and market risk and provides treasury services to customers. Treasury also runs its own Sukuk and specialised financial instruments book to manage the above risks. - Other: Functions other than above core lines of businesses including international business and properties. The accounting policies of the above reportable segments are the same as the Group’s accounting policies .
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Dubai Islamic Bank P.J.S.C. Notes to the condensed consolidated interim financial information for the nine-month period ended 30 September 2026 24 22. Segmental information (continued) 22.2 Segment profitability The following table presents summarised condensed consolidated interim statement of profit or loss related to Group’s reporta ble segments: Consumer banking Corporate banking Commercial banking Treasury Other Total Nine-month period ended 30 September Nine-month period ended 30 September Nine-month period ended 30 September Nine-month period ended 30 September Nine-month period ended 30 September Nine-month period ended 30 September 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 (Unaudited) (Unaudited) (Unaudited) (Unaudited) ((Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 Net operating revenue 2,936,639 2,882,452 2,552,227 2,159,864 815,948 766,886 1,748,101 1,868,312 1,879,484 1,998,324 9,932,399 9,675,838 Operating expenses (1,402,924) (1,287,845) (434,633) (460,430) (88,865) (91,422) (65,036) (80,549) (795,459) (853,384) (2,786,917) (2,773,630) ---- --- -- --- --- --- - ––––––––– ---- --- -- --- --- --- - –––––––– ---- --- -- --- --- --- - ––––––– ---- --- -- --- --- --- -- –––––––– ---- --- -- --- --- -- ––––––– ---- --- -- --- --- --- -- –––––––– Net operating profit 1,533,715 1,594,607 2,117,594 1,699,434 727,083 675,464 1,683,065 1,787,763 1,084,025 1,144,940 7,145,482 6,902,208 ---- --- -- --- --- --- - ––––––––– ---- --- -- --- --- --- - –––––––– ---- --- -- --- --- --- -- ––––––– ---- --- -- --- --- --- -- –––––––– ---- --- -- --- --- -- ––––––– Impairment charge, net (610,048) (291,787) ---- --- -- --- --- --- -- –––––––– Profit before income tax expense 6,535,434 6,610,421 Income tax expense (927,757) (929,027) ---- --- -- --- --- --- -- –––––––– Profit for the period 5,607,677 5,681,394 ======== ========
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Dubai Islamic Bank P.J.S.C. Notes to the condensed consolidated interim financial information for the nine-month period ended 30 September 2026 25 22. Segmental information (continued) 22.3 Segment financial position The following table presents assets and liabilities regarding the Group’s reportable segments: Consumer banking Corporate banking Commercial banking Treasury Other Total 30 September 2026 (Unaudited) 31 December 2025 (Audited) 30 September 2026 (Unaudited) 31 December 2025 (Audited) 30 September 2026 (Unaudited) 31 December 2025 (Audited) 30 September 2026 (Unaudited) 31 December 2025 (Audited) 30 September 2026 (Unaudited) 31 December 2025 (Audited) 30 September 2026 (Unaudited) 31 December 2025 (Audited) AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 AED’000 Segment assets 91,439,273 76,805,516 182,444,055 171,962,704 8,421,929 8,019,892 91,503,444 97,448,226 53,198,262 61,711,905 427,006,963 415,948,243 ======== ======== ========= ========= ======== ======== ======== ======== ======== ======== ========== ========== Segment liabilities 88,111,816 87,438,201 211,336,533 212,941,218 25,656,680 21,796,168 4,900,022 3,969,921 41,292,181 36,667,251 371,297,232 362,812,759 ======== ======== ========= ======== ======== ======== ======== ======== ======== ======== ========= =========
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Dubai Islamic Bank P.J.S.C. Notes to the condensed consolidated interim financial information for the nine-month period ended 30 September 2026 26 23. Related party transactions Parties are considered to be related if one party has the ability to control or influence the other party in making financial or operating decisions. The Bank enters into transactions with shareholders, associates, directors, key management personnel and their related concerns in the ordinary course of business at terms agreed between both parties on arm’s length basis. Balances and transactions between the Bank and its subsidiaries, which are related parties of the Bank, have been eliminated on consolidation and are not disclosed in this note. As at 30 September 2026 and 31 December 2025, the major shareholder of the Bank is Investment Corporation of Dubai (“ICD”), a company in which the Government of Dubai is the majority shareholder , which holds 27.9 7% shareholding of the Bank. The significant balances and transactions with related parties included in the condensed consolidated interim financial information are as follows. The Group has applied the exemption in IAS 24 Related Party Disclosures that allows to present reduced related party disclosures regarding transactions with government related parties. Major shareholders Directors and key management personnel Associates and joint ventures Total AED’000 AED’000 AED’000 AED’000 As at 30 September 2026 (Unaudited) Islamic financing and investing assets 1,497,801 51,473 12,285 1,561,559 Investment in Sukuk 804,778 - - 804,778 Customers’ deposits 519,427 145,016 7,737 672,180 Contingent liabilities and commitments - 81,688 591 82,279 As at 31 December 2025 (Audited) Islamic financing and investing assets 1,528,159 605,060 16,389 2,149,608 Investment in Sukuk 817,368 - - 817,368 Customers’ deposits 662,776 774,400 13,427 1,450,603 Contingent liabilities and commitments - 419,938 591 420,529 For the nine-month period ended 30 September 2026 (Unaudited) Income from Islamic financing transactions 47,407 1,946 684 50,037 Income from investment in Sukuk 29,827 - - 29,827 Depositors’ share of profits 41,852 996 - 42,848 For the nine-month period ended 30 September 2025 (Unaudited) Income from Islamic financing transactions 61,361 20,455 1,032 82,848 Income from investment in Sukuk 29,872 - - 29,872 Depositors’ share of profits 38,364 16,601 - 54,965 Related part y balances are at stage 1 as at 30 September 2026 and 31 December 2025. The Group recognizes impairment allowance against related party balances in accordance with the IFRS accounting standards. The impairment allowance is immaterial as of 30 September 2026 and 30 September 2025.
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Dubai Islamic Bank P.J.S.C. Notes to the condensed consolidated interim financial information for the nine-month period ended 30 September 2026 27 23. Related party transactions (continued) (a) The compensation paid to / accrued for key management personnel of the Bank during the nine-month period ended 30 September 2026 and 2025 was as follows: Unaudited 30 September 2026 Unaudited 30 September 2025 AED’000 AED’000 Salaries and other benefits 71,014 67,589 End of service benefits 1,079 1,447 ======= ======= 24. Fair value of financial instruments 24.1 Fair value of the Group’s financial assets and financial liabilities that are measured at fair value on a recurring basis The table below summarises the Group’s financial instruments’ fair value according to fair value hierarchy: Level 1 Level 2 Level 3 Total 30 September 2026 (Unaudited) AED’000 AED’000 AED’000 AED’000 Financial assets at fair value through profit or loss Islamic financing and investing assets - - 291,534 291,534 Investment in Sukuk 686,945 - - 686,945 Financial assets at fair value through other comprehensive income Investment in Sukuk 206,688 - - 206,688 Other investments – quoted 27,107 - - 27,107 Other investments - unquoted - - 887,662 887,662 Other assets Sharia-compliant Islamic derivative assets - 1,339,268 - 1,339,268 -------------------- -------------------- ------------------- -------------------- Total financial assets measured at fair value 920,740 1,339,268 1,179,196 3,439,204 ======== ======== ======= ======== Other liabilities Sharia-compliant Islamic derivative liabilities - 1,256,498 - 1,256,498 ======== ======== ======= ========
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Dubai Islamic Bank P.J.S.C. Notes to the condensed consolidated interim financial information for the nine-month period ended 30 September 2026 28 24. Fair value of financial instruments (continued) 24.1 Fair value of the Group’s financial assets and financial liabilities that are measured at fair value on a recurring basis (continued) Level 1 Level 2 Level 3 Total 31 December 2025 (Audited) AED’000 AED’000 AED’000 AED’000 Financial assets measured at fair value through profit or loss Islamic financing and investing assets - - 287,531 287,531 Investment in Sukuk - - - - Financial assets measured at fair value through other comprehensive income Investment in Sukuk 220,152 - - 220,152 Other investments - quoted 169,534 - - 169,534 Other investments - unquoted - - 437,065 437,065 Other assets Sharia-compliant Islamic derivative assets - 1,401,426 - 1,401,426------------------ -------------------- ------------------ ------------------ Total financial assets measured at fair value 389,686 1,401,426 724,596 2,515,708 ======== ======== ======== ======= Other liabilities Sharia-compliant Islamic derivative liabilities - 1,294,604 - 1,294,604 ======== ======== ======== ========= There were no transfers between Level 1 , 2 and 3 during the period ended 30 September 2026 and year ended 31 December 2025. 24.2 Reconciliation of Level 3 fair value measurement of financial assets measured at fair value Unaudited 30 September Audited 31 December 2026 2025 AED’000 AED’000 Balance at 1 January 724,596 849,985 Loss in other comprehensive income (6,057) (11,691) Reclassification 498,632 (117,788) Others (37,975) 4,090 –––––––– –––––––– Balance at period end 1,179,196 724,596 ======= =======
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Dubai Islamic Bank P.J.S.C. Notes to the condensed consolidated interim financial information for the nine-month period ended 30 September 2026 29 25. Capital adequacy ratio The Group lead regulator, the Central Bank of U.A.E. (CBUAE), sets and monitors capital requirements for the Group as a whole. The Group and individual banking operations within the Bank are directly supervised by their respective local regulators. The Group regulatory capital is analysed into following tiers: ▪ Common Equity Tier 1 (CET1), which includes fully paid up capital, statutory reserve, general reserve, retained earnings, exchange translation reserve and investment fair value reserve. Regulatory adjustments under Basel III, which includes deductions of d eferred tax assets, investments in banking and financial entities and other threshold deductions; ▪ Tier 1 capital, includes CET1, with additional items that consist of Tier 1 capital instruments and certain non-controlling interests in subsidiaries; and ▪ Tier 2 capital, which includes collective impairment allowance and qualifying subordinated liabilities, if any. The Bank was recognized as Domestic Systemically Important Bank (D -SIB) during the year ended 31 December 2018 and is accordingly required to keep a D-SIB buffer of 0.5% in addition to the CCB of 2.5%. As per the Central Bank regulation for Basel III, the minimum capital requirement as at 30 September 2026 is 13.6% inclusive of capital con servation buffer of 2.5% and D -SIB buffer of 0.5% and applicable countercyclical buffers . From 01 January 2026, counter cyclical buffer of 0.5% on the private sector credit exposures in the UAE is also required to be maintained , however, the implementation of counter cyclical buffer has been suspended under the CBUAE resilience program. Unaudited 30 September Audited 31 December 2026 2025 AED’000 AED’000 Capital base Common Equity Tier 1 41,839,002 36,897,720 Additional Tier 1 capital 7,346,000 7,346,000 ---------------------- –––––––––– Tier 1 Capital 49,185,002 44,243,720 Tier 2 Capital 2,252,815 2,106,086 ---------------------- –––––––––– Total capital base 51,437,817 46,349,806 ========= ========= Risk weighted assets Credit risk 284,107,075 272,839,586 Market risk 3,575,435 3,204,327 Operational risk 23,468,655 22,863,353 ---------------------- ---------------------- Total risk weighted assets 311,151,165 298,907,266 ========= ========= Capital Ratios Total capital ratio 16.5% 15.5% Tier 1 capital ratio 15.8% 14.8% Common equity Tier 1 capital ratio 13.4% 12.3%
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Dubai Islamic Bank P.J.S.C. Notes to the condensed consolidated interim financial information for the nine-month period ended 30 September 2026 30 26. Dividend At the Annual General Meeting of the shareholders held on 01 April 2026, the shareholders approved a cash dividend of AED 0. 35 per outstanding share amounting to AED 2,529.5 million for the year ended 31 December 2025. For the year ended 31 December 2024, the shareholders approved a cash dividend of AED 0.45 per share (AED 3,252.2 million) at the Annual General Meeting held on 13 March 2025 . 27. Seasonality of results No income of seasonal nature was recorded in the condensed consolidated interim statement of profit or loss for the nine-month periods ended 30 September 2026 and 30 September 2025. 28. Subsidiaries (a) The Group’s material interest held directly or indirectly in the subsidiaries is as follows: Name of subsidiary Principal activity Place of incorporation and operation Ownership interest and voting power 30 September 2026 31 December 2025 1. Dubai Islamic Bank Pakistan Limited Banking Pakistan 100.0% 100.0% 2. Noor Bank P.J.S.C. Banking U.A.E 100.0% 100.0% 3. Tamweel P.S.C. Financing U.A.E 92.3% 92.0% 4. DIB Bank Kenya Limited Banking Kenya 100.0% 100.0% 5. Dubai Islamic Financial Services L.L.C. Brokerage services U.A.E. - 100.0% 6. Deyaar Development P.J.S.C. Real estate development U.A.E 44.9% 44.9% 7. Dar Al Sharia Islamic Finance Consultancy L.L.C. Islamic finance advisory U.A.E. 100.0% 100.0% 8. Al Tanmyah Services L.L.C. Labour services U.A.E. 100.0% 100.0% 9. Al Tatweer Al Hadith Real Estate Investment Real estate development Egypt 100.0% 100.0% 10. Al Tameer Modern Real Estate Investment Real estate development Egypt 100.0% 100.0% 11. Al Tanmia Modern Real Estate Investment Real estate development Egypt 100.0% 100.0% 12. Instaprint L.L.C. (formerly Dubai Islamic Bank Printing Press L.L.C.) Printing U.A.E. 100.0% 100.0% 13. Creek Union Limited FZ LLC Investments U.A.E 100.0% 100.0% 14. Madinat Bader Properties Co. L.L.C Real Estate Development U.A.E 100.0% 100.0% (b) The following Special Purpose Vehicles (“SPV”) were formed to manage specific transactions including funds and are expected to be closed upon their completion. Name of SPV Principal activity Place of incorporation and operation Ownership interest and voting power 30 September 2026 31 December 2025 15. Al Islami Trade Company Limited Investments U.A.E. 100.0% 100.0% 16. Sequoia Investments L.L.C. Investments U.A.E. 100.0% 100.0% 17. DIB FM Ltd Investments Cayman Islands 100.0% 100.0% 18. Star Digital Investments SPV Limited Investments U.A.E 100.0% 100.0% (c) The Bank has liquidated entity 5 during the period and acquired certain shares for entity 3 during the period.
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Dubai Islamic Bank P.J.S.C. Notes to the condensed consolidated interim financial information for the nine-month period ended 30 September 2026 31 29. Comparative information Certain comparative amounts in the notes to the condensed consolidated interim financial information have been reclassified to conform to the current presentation. 30. Approval of the condensed consolidated interim financial information The condensed consolidated interim financial information w as approved by the Board of Directors and authorized for issue on 20 October 2026.