Emirates Islamic’s net profit sharply increased to AED 804 million for the first nine months of 2021 on higher non-funded income and a significant reduction in the cost of risk reflecting improved business sentiment.
Key Highlights – Q3 2021
- Total income up 14% y-o-y and 43% on Q3-20 driven by higher non funded income
- Expenses increased 1% y-o-y and 8% on Q3-20
- Impairment Allowances reduced 83% y-o-y with a lower cost of risk at 73 bps
- Operating profit improved 28% y-o-y and 94% on Q3-20
- Net profit increased to AED 804 million on the back of higher non-funded income and lower impairment allowances
- Net profit margin at 2.59% following stable profit rates in the first nine months of 2021
Strong capital and liquidity combined with a healthy deposit mix enable the Bank to support customers
- Total assets remained robust at AED 66 billion maintaining a strong asset base
- Customer financing at AED 42.4 billion, increased 4% from 2020
- Customer deposits at AED 48.9 billion, increased 4% from 2020 with CASA balances at 76% of deposits
- Credit Quality: Non-performing financing ratio improved to 8.4% with strong coverage ratio at 108%
- Capital: Tier 1 ratio at 19.2% and Capital adequacy ratio at 20.3% reflect the strong capital position of the Bank
- Headline Financing to Deposit ratio at 87% remained within the management’s target range
Hesham Abdulla Al Qassim, Chairman said:
“We are pleased to announce a strong set of financial results for the first nine months of 2021underlying the growing importance of Islamic banking.
We aim to set new milestones in Islamic banking and support the Government's goal of making Dubai the global capital of the Islamic economy.
As the UAE opens its doors to the world for Expo 2020 Dubai, we are proud to support the event as official Islamic Banking Partner. As the Islamic bank of choice in the UAE, Emirates Islamic sees this landmark event as an opportunity to accelerate the transformation of the world’s oldest and most relevant banking system and gain far greater reach for our industry's ethical values through digital innovation.”
Salah Mohammed Amin, Chief Executive Officer said:
“Emirates Islamic’s net profits rebounded in the first nine months of 2021 at AED 804 million, driven by higher non-funded income coupled with lower impairment allowances.
As a key contributor to the development of the overall Islamic finance sector, Emirates Islamic has asserted its position as a leading financial institution in the UAE, and this is reflected in our financial performance.
In order to enhance the Expo 2020 Dubai experience, we are offering UAE residents an exclusive, limited-edition free-for-life co-branded Mastercard World Credit Card that rewards them with exclusive privileges during the iconic event. It offers exceptional value with a wide range of benefits across key Expo partners.
Providing a superior banking experience to customers remains a key focus for us and we continue to strengthen our value proposition through best-in-class innovative digital-led offerings and investment in the latest technology.
Time and again we have been recognized for our product and service innovations in the Islamic banking sector. As we remain committed to raising the profile of Islamic banking in the UAE, our strategic focus will remain on digital banking, driving a service culture and customer engagement.
- Launch of Emirates Islamic branch at Expo 2020 Dubai
- Launch of Emirates Islamic Expo 2020 Dubai Mastercard Credit Card
- The Bank was proud to win the following global awards at the Wold Finance Islamic Finance Awards 2021:
- ‘Best Islamic Bank in Customer Experience, UAE’
- 'Best Credit Card in the UAE' award for Skywards Black Credit Card
News Source: Dubai Media Office