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Emirates Islamic profits soar 51% to record $340m in 2022

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Emirates Islamic’s net profit soared 51% to a record AED1.24 billion ($340 million) in 2022 on higher capital and non-fund income and significantly lower risk costs, reflecting a strong economic recovery.

Total revenue increased 33% year-over-year due to higher financing and non-financing income from improved financing and deposit mix and higher margins on net margin

Operating expenses rose 29% year-on-year as the bank invested for future growth. The cost of risk decreased to 76 basis points due to financing growth, impairment charges increased by 5% year-on-year, and operating profit increased by 36% year-on-year.

Net profit rate

The bank’s net profit margin improved to 3.39% as strong capital and liquidity coupled with a healthy deposit portfolio enabled the bank to continue supporting customers.

Its total assets are expected to grow by 15% to AED75 billion in 2022. Customer financing rose 14% to AED48.4 billion, while customer deposits rose 19% to AED56.3 billion in 2022, with current and savings account balances accounting for 74% of total deposits.

Hesham Abdulla Al Qassim, Chairman of Emirates Islamic and Deputy Chairman and Managing Director of Emirates NBD, said: “The bank reported a 36% increase in operating profit compared to 2021, while the cost of risk also improved. Recipient bank for IPOs in the Dubai Financial Market, serving investors in the UAE’s capital markets including DEWA, ​​Salik, TECOM, Taaleem and EMPOWER.

Viability Rating

“Based on the bank’s strong performance, Fitch Ratings affirmed Emirates Islamic Bank’s long-term rating at ‘A+’ with a stable outlook, short-term rating at ‘F1’ and upgraded the bank’s Viability Rating. One of the highest emiratization rates, accounting for 38% of the workforce and 34% of key positions. Emirates Islamic also facilitates some learning and

UAE national talent development programmes, including the National Achievement Strategy Academy and Future-Proof Bankers.

“Fueled by core Shariah principles, Islam in the UAE remains firmly committed to its charitable activities and has contributed over AED108 million to a range of charities in 2022 through the UAE Islamic Charity Fund. The UAE Islamic Charity Fund is Financial assistance to those in need with a focus on food, shelter, health, education and social welfare donations. As the Islamic bank of choice in the UAE, we continue to play a key role in the development of Islamic banking in the UAE.”

Salah Mohammed Amin, Chief Executive Officer of Emirates Islamic, said: “Emirates Islamic has further strengthened its position as the leading Islamic financial institution in the UAE, achieving the highest growth in financing receivables and deposits since 2016, reflecting the current positive business sentiment Customer financing will grow 14% in 2022, customer deposits will grow 19%, and current and savings accounts will grow 13% during the year.

product supply

“In 2022, we have expanded our offerings with the launch of the Emarati Family Savings Account, Emarati Business Account and Super Savings Etihad Guest Account. We have also launched the Women Entrepreneur Account, offering a range of benefits and privileges to support women entrepreneurs Home. We enhanced our business-friendly solutions with the launch of cardless cash pickup through businessONLINE. We entered into a strategic partnership with Tradeling, the largest electronic marketplace focused on B2B transactions in the MENA region. Emirates Islamic continues to strengthen Its digital offerings have resulted in a 21% increase in online and mobile banking transactions.” — trade arab news agency

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