Emirates Islamic posts Dh155 million profit in Q1

The bank's net profit was lower due to additional impairments allowances.

Emirates Islamic, one of the leading Islamic financial institutions in the UAE, announced its financial results for the quarter ending March 31, 2020. The bank reported a net profit of Dh155 million for the first quarter of 2020, lower by 62 per cent year-on-year.
Salah Mohammed Amin, chief executive officer of Emirates Islamic said: "This is a challenging time for businesses everywhere as we deal with the significant impact of Covid-19, combined with low oil prices and negative market sentiment. Despite these challenges, we reported a net profit of Dh155 million as funded income remained stable at Dh468 million. The bank's net profit is lower as we have made additional impairments allowances to boost coverage in anticipation of a deterioration in credit quality in subsequent quarters."
Emirates Islamic provisions during the Q1-2020 reached Dh206 million, an increase of Dh224 million compared to the same period last year.
"I would like to reassure our stakeholders that we are committed to protecting the well-being and financial health of our customers, employees and the wider community. We welcome the actions taken by both the Government of Dubai and the UAE Central Bank in supporting customers. We were among the first Islamic banks to recognise the needs of our customers by offering relief measures, a true reflection of our commitment to society, according to the principles of Shariah. Our strong focus and investment on safe, accessible banking through digital platforms have helped us continue to deliver an exceptional service to our customers," added Amin.
"As we continue to act in accordance with UAE government directives, I am confident that our proactive business resilience and continuity plans, combined with our responsive approach to customers, digital banking expertise and financial strength will help us continue to be the market-leading Islamic bank in the UAE."
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