Emirates Islamic net profit rose to a record AED811 million ($221 million) in the first quarter of 2024, up 35% year-on-year, fortified by a strong 19% growth in total income, driven by higher funded and non-funded income streams. Net profit margin was at 4.7%.
Furthermore, the remarkable 28% increase in operating profit not only highlights the bank’s operational productivity but also echoes the positive economic outlook within the optimistic regional economy. Operating expenses increased by 1% y-o-y as the bank invested in future growth. Cost to income ratio at 28.4%. Impairment Allowances were reduced by 56% y-o-y and Operating profit showed an impressive growth of 28% y-o-y.
Strong capital and liquidity
Strong capital and liquidity combined with a healthy deposit mix enabled the bank to continue supporting customers. Total assets at AED95.0 billion, increased 8% from end 2023 and customer financing at AED57.0 billion, increased 6% from end 2023.
Hesham Abdulla Al Qassim, Chairman, Emirates Islamic said: “The bank’s total income grew 19% compared to the first quarter of 2023, with customer deposits increasing by 9% from end 2023, with Current Account and Savings Account balances at 77% of total deposits.
Innovative financial solutions
“Our strong results reflect our focus on providing innovative financial solutions to our customers while enhancing the overall customer experience. Emirates Islamic marks a significant milestone this year, celebrating 20 years of collective progress, affirming our position as one of the leading Shariah-compliant banks in the UAE. The bank has made significant strides over the past two decades, across areas such as Emiratization, diversity and inclusion, and sustainability, among others.
“As a prominent local Islamic bank, Emirates Islamic remains committed to contributing to the UAE’s progress by spearheading innovations in the Islamic banking sector. The bank recently announced the successful conclusion of its debut $500 million syndicated Financing Facility. The landmark three-year term financing facility is the first of its kind raised by a Shariah-compliant financial institution.”
UAE’s First Vertiport for Electric Aircrafts Unveiled at Yas Island, Abu Dhabi
Farid AlMulla, Chief Executive Officer, Emirates Islamic said: “A strong capital and liquidity, combined with a healthy deposit mix, allowed the bank to continue supporting customers. Further, operating profit showed an impressive growth of 28% year-on-year, underlying the success of Emirates Islamic’s strategy.
Shariah products
“The bank’s commitment to innovation and digital excellence remains unwavering and Emirates Islamic continues to invest strategically in technology. Recognized as one of the UAE’s leading Islamic banks, Emirates Islamic plays a crucial role in the country’s progress. Emirates Islamic also became the first Islamic bank to sign a Shariah-compliant agreement with The Arab Investment and Export Credit Guarantee Corporation (Dhaman) to facilitate trade and foreign capital inflows within the Pan-Arab region.”
