Emirates Islamic net profit rises to Dhs1.05b

Emirates Islamic bank’s net profit jumped to Dhs1.05 billion for the first nine months of 2022 on higher funded and non-funded income with a significant reduction in the cost of risk, reflecting improved business sentiment.

In the period from Janurary-September, the banks recorded a strong operating performance on higher funded and non-funded income coupled with reduction in cost of risk, with the total income up 22 per cent year-on-year (YoY) driven by higher funded and non-funded income.  Meanwhile, expenses increased 22 per cent YoY, Impairment Allowances decreased 23 per cent YoY reflecting improved business sentiment, and operating profit grew 21 per cent YoY. Net profit increased to Dhs1,054 million on the back of higher funded and non-funded income, disciplined cost management action and lower impairment allowances, while net profit margin improved to 3.09 per cent following stable profit rates in the first nine months of 2022.

Moreover, EI’s total assets increased to Dhs73 billion maintaining a solid asset base, customer financing stood at Dhs48 billion, rising 12 per cent from 2021, with customer deposits landing at Dhs55 billion, an increase of 16 per cent compared to 2021.

Hesham Abdulla Al Qassim, Chairman of Emirates Islamic, commented, “We are extremely pleased with our performance for the first nine months of 2022 as Total Income grew 22 per cent year-on-year and net profit jumped to Dhs1,054 million. Our results are a strong indication of Emirates Islamic’s role as a key driver in the growth of Islamic banking in the UAE, empowering our customers to benefit from a buoyant UAE economy.

WAM