Emirates Islamic’s net profit rises Emirates Islamic’s net profit rises

Emirates Islamic’s profit sharply increases to AED 1,054 million for the first nine months of 2022

Dubai, 27 October 2022: Emirates Islamic’s net profit jumped to AED 1,054 million 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.

Total Income (YTD)
AED 2,185 million
↑22% y-o-y		 Expenses (YTD)
AED 987 million
↑22% y-o-y		 Provisions(YTD)
AED 144 million
↓23% y-o-y		 Net Profit(YTD)
AED 1,054 million
↑31% y-o-y
Total Income (Q3)
AED 815 million
↑32% y-o-y		 Expenses (Q3)
AED 393 million
↑39% y-o-y		 Provisions (Q3)
AED 69 million
↓32% y-o-y		 Net Profit (Q3)
AED 353 million
↑50% y-o-y
NFIM
3.09 %		 Cost: Income Ratio
45.2 %		 NPF Ratio
6.9 %		 CET-1 Ratio
17.5 %

Key Highlights – First nine months of 2022

Strong operating performance on higher funded and non-funded income coupled with reduction in cost of risk

  • Total income up 22% y-o-y driven by higher funded and non-funded income
  • Expenses increased 22% y-o-y as EI invests for future growth
  • Impairment Allowances reduced 23% y-o-y reflecting improved business sentiment
  • Operating profit improved 21% y-o-y
  • Net profit increased to AED 1,054 million on the back of higher funded and non-funded income, disciplined cost management action and lower impairment allowances
  • Net profit margin improved to 3.09% following stable profit rates in the first nine months of 2022

Strong capital and liquidity combined with a healthy deposit mix enable the Bank to support customers

  • Total assets increased to AED 73 billion maintaining a solid asset base
  • Customer financing at AED 48 billion, increased 12% from 2021
  • Customer deposits at AED 55 billion, increased 16% from 2021 with CASA balances at 77% of deposits
  • Credit Quality: Non-performing financing ratio improved to 6.9% with strong coverage ratio at 124%
  • Capital: Tier 1 ratio at 17.5% and Capital adequacy ratio at 18.7% reflect the strong capital position of the Bank
  • Headline Financing to Deposit ratio at 87% reflects continued healthy liquidity in the UAE

Hesham Abdulla Al Qassim, Chairman said:

  • “We are extremely pleased with our performance for the first nine months of 2022 as Total Income grew 22% year-on-year and net profit jumped to AED 1,054 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.
  • Following earlier IPOs on the Dubai Financial Market, we were pleased in the third quarter to support Salik and act as a Receiving Bank in its very successful public offering, as we remain committed to providing seamless access for local investors to the UAE capital markets.
  • We have consistently invested in innovation and infrastructure, the results of which are now evident in our financial performance and strong balance sheet. Shariah-compliant banking continues to set new milestones in the overall banking sector, and Emirates Islamic aims to contribute substantially to the sector’s growth and the Government’s goal of making Dubai the global capital of the Islamic economy.”

Salah Mohammed Amin, Chief Executive Officer said:

  • “At Emirates Islamic, we continue to see an improvement in performance across all our business segments, including Retail, Business and Wholesale Banking.
  • The successful performance is reflected in higher funded and non-funded income and lower impairment allowances.
  • We have increased customer financing by 12% and grown the diversified deposit base by 16% during the first nine months of 2022, supporting customers and fulfilling their banking requirements.
  • We will continue to strengthen our value proposition through best-in-class innovative offerings backed by the latest technology, with a clear objective to provide our customers with the best customer experience across all touchpoints.”

Key Highlights

  • The Bank won three awards at the World Finance Islamic Finance Awards this year - namely “Best Islamic Bank in UAE”; “Best Islamic Bank in Customer Experience, UAE” & “Best Credit Card in UAE” for our Etihad Guest Credit Cards - a range of exclusive, co-branded credit cards with Etihad Airways.
  • Launch of ‘Businesswomen Account’ offering a host of benefits and privileges to support women entrepreneurs in the UAE.
  • Launch of cardless cash withdrawal via our global cash management platform, businessONLINE as part of our commitment to support UAE businesses with seamless business-friendly solutions.
  • Collaboration with Tradeling, the largest eMarketplace focused on B2B transactions in the MENA region.