Emirates Islamic Achieves Record Profit of AED 811 Million in Q1 2024

Emirates Islamic Achieves Record Profit of AED 811 Million in Q1 2024

Emirates Islamic profit surged to a record AED 811 million in the first quarter of 2024, up 35% year-on-year.

This remarkable financial success was underpinned by a robust 19% growth in total income, propelled by higher funded and non-funded income streams, which serves as a testament to the Bank's strengthened business sentiment and strategic financial management. Furthermore, the noteworthy 28% increase in operating profit not only underscores the Bank's operational efficiency but also mirrors the positive economic outlook within the buoyant regional economy.

Key Highlights – Q1 2024

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

• Total income up 19% y-o-y driven by higher funded income and non funded income

• Operating expenses increased by 1% y-o-y as the Bank invests for future growth. Cost to income ratio at 28.4%

• Impairment Allowances decreased by 56% y-o-y

• Operating profit showed an impressive growth of 28% y-o-y

• Net profit increased to a record AED 811 million, up by 35% y-o-y

• Net profit margin at 4.7%

Strong capital and liquidity combined with a healthy deposit mix enabled the Bank to continue supporting customers

• Total assets at AED 95.0 billion, increased 8% from end 2023

• Customer financing at AED 57.0 billion, increased 6% from end 2023

• Customer deposits at AED 66.7 billion, increased 9% from end 2023 with Current Account and Savings Account balances at 77% of total deposits

• Credit Quality: Non-performing financing ratio improved to 5.8% with strong coverage ratio at 133%

• Capital: Tier 1 ratio of 18.8% and 19.9% Capital adequacy ratio reflects Bank’s strong capital position

• Headline Financing to Deposit ratio at 85.5%, reflects continued healthy liquidity in the UAE

Hesham Abdulla Al Qassim, Chairman of Emirates Islamic, announced the bank's robust performance in Q1 2024, with a 35% increase in net profit to AED 811 million. Celebrating 20 years, the bank showcased its strides in Emiratisation, diversity, and sustainability. Al Qassim highlighted the bank's USD 500 million syndicated Financing Facility and its ESG agreement with BEEAH Group, emphasizing commitment to Islamic banking and social responsibility. CEO Farid AlMulla echoed the strong growth, citing an 8% rise in total assets to AED 95 billion and a 28% increase in operating profit. Emirates Islamic's digital-first approach and community initiatives, including support for Umrah and Ramadan food distribution, underscored its commitment to innovation and social welfare.

News Source: Dubai Media Office

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