Emirates Islamic Announces Q3 2016 Results
October 17, 2016Emirates Islamic, one of the leading Islamic financial institutions in the UAE, announced its financial results for the period ending September 30, 2016.
- Net profit for the 9 months ending September 30, 2016 stands at AED 106 million compared to AED 534 million for the same period last year. The decrease is largely attributable to prudent provisioning on the legacy and the SME portfolio.
- Total Income for the first 9 months (net of customers’ share of profit) grew by 6 per cent (published basis) and 8 per cent (adjusted for one offs) to AED 1.92 billion compared to the same period last year.
- Total Assets at AED 59.6 billion, up 12 per cent from end 2015.
- Financing and investing receivables at AED 37.4 billion, up 9 per cent from end 2015.
- Customer Deposits at AED 41.3 billion, up 5 per cent from end 2015.
- Current and Saving accounts balances up 9 per cent from end 2015.
- Headline Financing to Deposits ratio at 90.5 per cent and remains comfortably within the management’s target range.
- Impaired Financing ratio stands at 9.1 per cent and coverage ratio advanced to 93.5 per cent.
"Emirates Islamic's results this quarter reflect the prudent provisioning and secure financial policies of the bank. In light of the current economic atmosphere, the Bank aims to first strengthen its balance sheet and then move into a conservative growth strategy", said Jamal Bin Ghalaita, Chief Executive Officer of Emirates Islamic. "There is an increasing appetite for Islamic financial services in the UAE, reflected in the twelve percent increase in our assets and the five percent growth in our customer deposits during 2016.
"This positive sentiment was also evident with our record breaking Sukuk, launched earlier during the year that was three times oversubscribed, indicative of the faith that our investors have in us," continued Bin Ghalaita.
"We continue to invest in widening the market for Islamic banking with the second edition of our successful ISLAMIC BANKING INDEX BY EMIRATES ISLAMICTM, a thought leadership initiative that has given us a deeper insight into the banking habits of UAE consumers. With over half of the UAE already having at least one Islamic product in their portfolio and two thirds saying they would subscribe to a Shari'a compliant product, the bank remains poised to reap the benefits of these findings in a controlled manner.
"As a homegrown financial institution that has carefully invested in innovation over the past few years, Emirates Islamic remains committed to fulfilling the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minster, and Ruler of Dubai, of making Dubai the world capital of the Islamic economy." concluded Bin Ghalaita.
On July 27 2016, Fitch Ratings, the global ratings agency, affirmed the long term Issuer Default Rating of Emirates Islamic at 'A+' with a Stable Outlook. Fitch also affirmed the Bank's support rating of '1'.
Emirates Islamic was named the Fastest Growing Bank – UAE at the recent Banker Middle East Industry Awards 2016, in recognition of its exceptional growth in 2015. The bank was also recognised among Global Finance's 2016 'The Innovators' of Islamic Finance for EI trade, the world's first of its kind Shari'a-compliant online Trade Finance and Supply Chain platform.