Highest-ever growth: Emirates Islamic Q1 profit surges 97%

Emirates Islamic on Wednesday reported 97 per cent year-on-year growth in first-quarter net profit due to increase in core business. It is the highest-ever growth achieved by the bank since its inception in 2004.
In a statement, the Islamic lender said net profit rose to Dh411 million in January-March quarter while net profit surged 54 per cent on quarter-on-quarter basis. The bank attributed strong set of results to balance sheet growth, higher funded income, growth in fee income and lower cost of risk.
Salah Mohammed Amin, chief executive officer of Emirates Islamic, said the bank has recorded its highest-ever quarterly net profit since its inception in 2004, amounting to Dh411 million for first quarter of 2019, a 97 per cent year-on-year increase. 
"Our operating performance is a result of core business growth, linked with a continuing improvement in cost of risk. The bank's balance sheet remains healthy with a further strengthening in capital due to retained earnings, stable credit quality and liquidity."
The bank's total income rose 12 per cent to Dh663 million, total assets and customer accounts increased by four per cent to Dh60.6 billion and Dh43.4 billion (from end 2018), respectively.
Funded income margins improved by 28 basis points to 3.14 per cent helped by rate rises. Impaired financing ratio stood firm at 8.6 per cent with a strong coverage ratio of 111 per cent. Moreover, headline financing to deposit ratio at 84 per cent demonstrates a healthy liquidity position.
"At Emirates Islamic, we are committed to the growth of Islamic banking across the UAE, and we recently launched our flagship branch in Abu Dhabi, providing retail, priority, business and corporate banking services to our customers in the capital," Amin said.
"With more of our customers banking digitally, we will continue to expand the range of services on our online banking, mobile app and other digital channels. Among many other firsts, we are the first and only Islamic bank in UAE to have launched all 3 major digital mobile wallets, namely Apple Pay, Google Pay and Samsung Pay, providing secure and convenient payment solutions to our customers," he added.
As the official Islamic banking partner of Expo 2020 Dubai, Amin said Emirates Islamic is keen to play a key role in supporting the nation's development.
"The uptake of Islamic banking products and services across the corporate, SME and individual segments has increased, and with our focus on innovation and superior customer experience, we are well positioned to increase our market share in this sector," he said.
business@khaleejtimes.com