Emirates Islamic Announces Q3 2017 Results
October 30, 2017
Emirates Islamic, one of the leading Islamic financial institutions in the UAE, announced its financial results for the period ending September 30, 2017.
- Net profit for the 9 months ending September 30, 2017 increased four-fold reaching AED 498 million compared to AED 106 million for the same period last year.
- Total Income for the first 9 months (net of customers’ share of profit and distribution to Sukuk holders) declined by 6 per cent to AED 1.8 billion compared to the same period last year. This is mainly due to lower one off gains from the sale of investment properties.
- Total Assets at AED 59.9 billion, up by 1 per cent from end 2016.
- Financing and investing receivables at AED 35.3 billion, declined by 3 per cent from end 2016.
- Customer Deposits at AED 40.8 billion, declined by 1 per cent from end 2016. Current and Saving accounts balances up 4 per cent from end 2016 and represent 70 per cent of total deposits.
- Headline Financing to Deposits ratio at 87 per cent and remains comfortably within the management’s target range.
- Tier 1 Capital Ratio strengthened to 15.9 per cent and Capital Adequacy Ratio advanced to 17.1 per cent with retained earnings.
Jamal Bin Ghalaita, Chief Executive Officer of Emirates Islamic commented on the results, “After a challenging 2016, our results have shown a strong improvement with a net profit of AED 498 million, compared to AED 106 million in the same period last year. The results reflect our policies of effective cost management combined with prudent risk management. We continue to stringently manage our expenses, with operating cost down by 13 per cent compared to the same period last year. Net Impairment allowances have improved by 41 per cent year on year due to effective remediation and an improved cost of risk associated with both corporate and retail financing receivables. Current and Savings account balances represent 70 per cent of total customer deposits compared with 67 per cent at the beginning of the year, reflecting the Bank’s focus on improving its average cost of funding.”
“We are well positioned to benefit from current market opportunities as a result of our investment in technology and innovation. Digital transformation has been a key driver of improving the customer experience at Emirates Islamic. Recent digital initiatives include the launch of our revamped Mobile Banking app and QuickRemit foreign exchange transfers. Looking ahead, we will continue to provide our customers with market-leading products and services, leveraging on the benefits of the fast-growing Fintech industry.”
“At Emirates Islamic, we are always cognizant of our commitment to support the community. In this Year of Giving, as marked by U.A.E. President His Highness Sheikh Khalifa bin Zayed Al Nahyan, we have distributed more than AED 46 million to a number of charitable institutions and deserving causes. Our staff have proved generous in the spirit of volunteering as they gave their time to support individuals in need. We will continue to play our part in this noble cause, and in the process inspire other companies and individuals to lend their support in making UAE the happiest place in the world”, concluded Bin Ghalaita.
Emirates Islamic was recently named ‘Islamic Personal Finance Provider of the Year’ by YallaCompare, the region’s leading financial services comparison website. Other accolades received by Emirates Islamic this year include ‘Most Improved Website’ and ‘Best Social Media Reach’ at the 2017 Service Olympian Awards; ‘Best Savings Account’ and ‘Best Islamic Premium Card’ at the Banker Middle East Product Awards; and the title of ‘Service Hero” in the Islamic Banking category of the Service Hero Index.