39 C
Dubai
Friday, May 17, 2024
spot_img

Emirates Islamic’s net profit rises to AED 1.2b for H1

Emirates Islamic achieved its highest-ever half-year net profit, surging by an exceptional 73 percent to AED 1.2 billion during the first half of 2023. The remarkable profit growth was fueled by increased funded and non-funded income, reflecting a positive shift in business sentiment.

The bank demonstrated strong operating performance, with higher funded and non-funded income contributing to a 71 percent year-on-year increase in total income. Meanwhile, expenses rose by 63 percent year-on-year as the bank invested in future growth.

The bank’s Impairment Allowances benefited from strong recoveries, resulting in a healthy 60 basis point cost of risk. Operating profit improved significantly by 77 percent year-on-year, leading to a sharp increase in net profit to AED 1.212 billion, primarily driven by higher funded and non-funded income.

The net profit margin reached 4.74 percent, maintaining stable profit rates in the first half of 2023.

Emirates Islamic also witnessed growth in its total assets, which increased by 6 percent to AED 79 billion compared to the end of 2022. Customer financing saw a 5 percent rise to AED 51 billion, and customer deposits increased by 3 percent to AED 58 billion, with Current and Saving Account balances comprising 77 percent of the deposits.

The credit quality remained favorable, with the non-performing financing ratio at 7.2 percent, and a strong Coverage ratio of 120 percent. Additionally, the bank’s capital position remained robust, with a Common Equity Tier 1 ratio of 19.0 percent and a Capital adequacy ratio of 20.1 percent.

Hesham Abdulla Al Qassim, the Chairman, expressed his satisfaction with the outstanding financial results, highlighting the bank’s commitment to contributing significantly to the UAE’s economic growth by providing innovative Shariah-compliant banking solutions to customers.

Emirates Islamic’s dedication to deepening the liquidity of the local currency sukuk market was evident as it successfully issued the first dirham sukuk from a UAE bank, amounting to AED 1 billion.

This step expanded financing options for UAE corporations with Shariah-compliant needs and enhanced the development of the medium-term dirham yield curve.

The bank’s excellent performance and leading product offering were recognized with prestigious awards, including the ‘Most Innovative Sukuk’ award at The Banker Islamic Banking Awards for their AED 1 billion dirham-denominated sukuk and the ‘Best Islamic Real Estate Deal’ at the Euromoney Islamic Finance Awards 2023 for facilitating a real estate financing deal for a prominent Dubai-based conglomerate.

Next Article

Related Articles

Best Russian Spas in Dubai

Indulge in Luxury: Discover the Best Russian Spas in Dubai Dubai, renowned for its opulent lifestyle and unparalleled luxury experiences, is also home to some...

Dubai Unveils Cutting-Edge AI Tool to Detect Respiratory Infection-Causing Bacteria.

Dubai has unveiled a new AI-powered tool designed to detect bacteria responsible for respiratory infections. In a groundbreaking development poised to revolutionize healthcare,  This cutting-edge...

Dubai Salik Generates Dh562 Million Revenue in Q1 Amid Rising Traffic Volume.

Dubai's Salik Announces Dh562 Million Q1 Revenue Amid Increased Traffic Volume In a resounding testament to its efficiency and popularity, Dubai's Salik road toll system...

Fahd Khatri: Pioneering Terracotta Artisanship and Sustainable Living in Dubai

In the bustling metropolis of Dubai, Fahd Khatri, the founder of ARK Naturals, is redefining luxury with a touch of the earth's oldest crafts....

Dubai Emerges as Global Business Hub: Multiple Firms Move Global Headquarters in 18 Months.

Dubai Emerges as Global Business Hub Over the past 18 months, Dubai has witnessed a remarkable influx of multinational corporations relocating their global headquarters to...

Latest Articles