Dubai Islamic Bank Kept at Buy as FAB Notes Q3 Results

07:27 AM EDT, 10/27/2026 (MT Newswires) -- FAB Securities maintained its investment view on Dubai Islamic Bank (DFM:DIB) following the lender's third-quarter earnings, according to a Tuesday first-look note. For the reporting period, the United Arab Emirates-based bank logged a 3.4% year-over-year decrease in net profit to 1.80 billion Emirati dirhams, compared with FAB's 1.79 billion-dirham forecast. Total operating income declined 5% annually to 3.14 billion dirhams, against the research firm's 3.34 billion-dirham estimate. "We maintain our BUY rating on DIB with a target price of AED 9.20. DIB reported a decline in net profit of 3.4% YOY to AED 1,800 Mn, while continuing to deliver balance sheet growth. The decline was largely due to pressure on net funded income amid increasing funding costs alongside softness in fee and commission income," analysts said. "Overall, DIB faced continued pressure on margins with NIMs declining 34 bps YOY and 6 bps QOQ, amid higher funding costs in 3Q26. However, the Bank continued to deliver balance-sheet growth, improve asset quality and strengthen the capital position, supported by prudent risk management and disciplined capital allocation."