Emirates Islamic’s net profit rises to AED 1.2 billion for first half of 2023

 Emirates Islamic’s net profit rises to AED 1.2 billion for first half of 2023

DUBAI, 27th July, 2023 (WAM) --  Emirates Islamic delivered its highest ever half-year net profit, with an exceptional jump of 73 percent to AED 1.2 billion during the first half of 2023. This record profit was driven by higher funded and non-funded income reflecting improved business sentiment.

Key Highlights – First Half 2023

- Strong operating performance on higher funded income and higher non-funded income

- Total income up 71 percent y-o-y driven by higher funded and non-funded income
- Expenses increased 63 percent y-o-y  as the bank invests for future growth
- Impairment Allowances benefit from strong recoveries, delivering a healthy 60 basis point cost of risk 
- Operating profit improved 77 percent y-o-y 
- Net profit sharply increased to AED 1.212 billion on the back of higher funded income and higher non-funded income 
- Net profit margin at 4.74 percent following stable profit rates in the first half of 2023

Strong capital and liquidity combined with a healthy deposit mix enabling the Bank to provide improved products to customers 

-  Total assets at AED 79 billion, increased 6 percent from end 2022
-  Customer financing at AED 51 billion, increased 5 percent from end 2022
-  Customer deposits at AED 58 billion, increased 3 percent from end 2022 with Current and Saving Account balances at 77 percent of deposits
-  Credit Quality: Non-performing financing ratio at 7.2% with Coverage ratio strong at 120 percent 
-  Capital: Common Equity Tier 1 ratio at 19.0% and Capital adequacy ratio at 20.1 percent reflect the strong capital position of the Bank
- Headline Financing to Deposit ratio at 88% remained within the management’s target range

Hesham Abdulla Al Qassim, Chairman said: “Emirates Islamic delivered a record set of financial results, with a net profit of AED 1.2 billion for the first six months of 2023.  Total income was up 71 percent driven by higher funded and non-funded income, leading to operating profit growing strongly by 77 percent over the comparable period in 2022.

Emirates Islamic has always played an integral part in the UAE’s development and we are committed to contributing substantially to the economy’s growth by providing innovative Shariah-compliant banking solutions to our customers.

Demonstrating Emirates Islamic’s commitment to deepening the liquidity of the local currency sukuk market, Emirates Islamic issued the first dirham sukuk from a UAEbank, with a hugely successful AED 1 billion dirham-denominated sukuk. The sukuk issue sets an important precedent, expanding financing options for UAE corporations with Shariah-compliant needs while enhancing the development of the medium-term dirham yield curve.

 In recognition of Emirates Islamic’s strong performance and market-leading product offering, we are honoured to be awarded the ‘Most Innovative Sukuk’ award at The Banker Islamic Banking Awards for our AED 1 billion dirham-denominated sukuk and ‘Best Islamic Real Estate Deal’ at the prestigious Euromoney Islamic Finance Awards 2023 for facilitating a real estate financing deal for a leading Dubai-based conglomerate.,'' he added.