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Dubai's Emirates Islamic posts Dh1.05b profit for first nine months

Bank’s total income rose 22%year-on-year driven by higher funded and non-funded income

Emirates Islamic’s net profit jumped to Dh1.054 billion for the first nine months of 2022 on higher funded and non-funded income with a significant reduction in the cost of risk reflecting improved business sentiment, the bank said on Thursday.

The bank’s total income rose 22 per cent year-on-year driven by higher funded and non-funded income while expenses increased 22 per cent year-on-year as the bank invests for future growth.

EI’s total assets increased to Dh73 billion, maintaining a solid asset base, while customer financing rose 12 per cent to Dh48 billion and customer deposits increased by 16 per cent to Dh 55 billion with CASA (current account savings account) balances at 77 per cent of deposits. Non-performing financing ratio improved to 6.9 per cent with a strong coverage ratio at 124 per cent. Tier 1 ratio stood at 17.5 per cent and capital adequacy ratio at 18.7 per cent, reflecting the strong capital position of the bank, the statement said.

Key growth driver

Hesham Abdulla Al Qassim, EI chairman, said the results are a strong indication of Emirates Islamic’s role as a key driver in the growth of Islamic banking in the UAE, empowering customers to benefit from a buoyant UAE economy.

Salah Mohammed Amin, chief executive officer, said the bank continued to see an improvement in performance across all our business segments, including retail, business and wholesale banking. “We have increased customer financing by 12 per cent and grown the diversified deposit base by 16% during the first nine months of 2022, supporting customers and fulfilling their banking requirements. We will continue to strengthen our value proposition through best-in-class innovative offerings backed by the latest technology, with a clear objective to provide our customers with the best customer experience across all touchpoints.”

isaacjohn@khaleejtimes.com