Khaleej Times, Saturday, Jan 28, 2023 | Rajab 6, 1444
Emirates Islamic profit surges 51% to Dh1.24b
Emirates Islamic said on Thursday that its 2022 net profit soared 51 per cent to
a record Dh1.24 billion “on higher funded income and non-funded income with a
significant reduction in the cost of risk reflecting the strong economic
Total income was up 33 per cent year-on-year driven by higher funded income and
non-funded income as a result of improved financing and deposit mix with higher
profit rates feeding through to net profit margin, the bank said in a statement.
The bank’s total assets increased by 15 per cent to Dh75 billion while customer
financing rose by 14 per cent to Dh48.4 billion. Customer deposits surged 19 per
cent to Dh56.3 billion with current account and savings account balances
remaining at 74 per cent of total deposits. Non-performing financing ratio
improved to 7.0 per cent with strong coverage ratio at 128 per cent.
The bank said its Tier 1 ratio of 17.9 per cent and 19 per cent capital adequacy
ratio reflected the bank’s strong capital position while headline financing to
deposit ratio at 86 per cent reflected continued healthy liquidity in the UAE.
The bank’s operating expenses increased 29 per cent y-o-y as it invests for
future growth, said the statement.
Hesham Abdulla Al Qassim, chairman of Emirates Islamic, and vice-chairman and
managing director of Emirates NBD, said Emirates Islamic has one of the highest
Emiratisation rates in the UAE banking sector, at 38 per cent of total employees
and 34 per cent of critical positions.
Salah Mohammed Amin, chief executive officer of Emirates Islamic, said Emirates
Islamic continued to strengthen its digital offering, resulting in a 21 per cent
increase in online and mobile banking transactions. “We are pleased to be
recognized in 2022 for our financial performance.”
He said Emirates Islamic has further strengthened its position as a leading
Islamic financial institution in the UAE, achieving its highest growth in
financing receivables and deposits since 2016, reflecting the current optimistic