Emirates Islamic delivered its highest ever half-year net profit, with an exceptional jump of 73% to 

AED1.2 billion ($326.7 million) during the first half of 2023. This record profit was driven by higher funded and non-funded income reflecting improved business sentiment. 

 

The bank reported strong operating performance on higher funded income and higher non-funded income. Total income was up 71% y-o-y to AED2.340 billion.

 

Other financial highlights

• Expenses increased 63% y-o-y to AED968 million as the bank invested for future growth;

• Impairment allowances benefited from strong recoveries, delivering a healthy 60 basis point cost of risk; 

• Operating profit improved 77% y-o-y 

• Net profit margin was at 4.74% following stable profit rates in the first half of 2023

• Total assets at AED79 billion, increased 6% from end 2022;

• Customer financing was at AED51 billion, a growth of 5% from end 2022;

• Customer deposits at AED58 billion was an increase of 3% from end 2022 with current and saving account balances at 77% of deposits;

• Credit Quality: Non-performing financing ratio at 7.2% with coverage ratio strong at 120% 

• Capital: Common Equity Tier 1 ratio at 19.0% and Capital adequacy ratio at 20.1% reflect the strong capital position of the bank

• Headline Financing to Deposit ratio at 88% remained within the management’s target range

 

Hesham Abdulla Al Qassim, Chairman, said: “Emirates Islamic delivered a record set of financial results, with a net profit of AED1.2 billion for the first six months of 2023. 

 

“Emirates Islamic has always played an integral part in the UAE’s development and we are committed to contributing substantially to the economy’s growth by providing innovative Shariah-compliant banking solutions to our customers 

 

“Demonstrating Emirates Islamic’s commitment to deepening the liquidity of the local currency sukuk market, Emirates Islamic issued the first dirham sukuk from a UAE bank, with a hugely successful AED1 billion dirham-denominated sukuk. The sukuk issue sets an important precedent, expanding financing options for UAE corporations with Shariah-compliant needs while enhancing the development of the medium-term dirham yield curve,” he said. 

 

Salah Mohammed Amin, Chief Executive Officer, said:  “Emirates Islamic’s balance sheet grew by 6% to AED79 billion during the first half of 2023, maintaining a trend of successful asset growth. 

“Strong capital and liquidity combined with a healthy deposit mix enable the bank to support customers in fulfilling their banking requirements. We have witnessed a strong growth across the Retail, SME and Corporate segments as the nation’s economy continues to be buoyant” he added. – TradeArabia News Service