Emirates Islamic delivered its highest ever 9-month profit, as profit surged by a remarkable 56% to AED 1.65 billion during the first 9 months of 2023.
The increase in profit was driven by higher funded and non-funded income reflecting improved business sentiment. Q3’23 income grew 46% y-o-y to AED 1.2 billion which helped drive profit 23% higher to AED 435 million reflecting the buoyant regional economy. Emirates Islamic is proud to play an integral part of the UAE’s economic and commercial development.
This is recognised as Emirates Islamic was named the ‘Most Innovative Islamic Bank in the UAE’ and ‘Best Islamic SME Bank in the UAE’, reflecting its innovative customer focus and business-friendly propositions for small and medium enterprises at the International Finance Awards 2023.
Key Highlights – First nine months of 2023
Strong operating performance on higher funded and non-funded income
- Total income up 62% y-o-y driven by higher funded and non-funded income
- Expenses increased 35% y-o-y as EI invests for future growth
- Operating profit improved 83% y-o-y
- Net profit sharply increased to AED 1.647 billion on the back of higher funded and non-funded income
- Net profit margin improved to 4.7% following stable profit rates in the first nine months of 2023
Strong capital and liquidity combined with a healthy deposit mix enable the Bank to support customers
- Total assets increased to AED 86 billion maintaining a solid asset base
- Customer financing at AED 52 billion, increased 7% from 2022
- Customer deposits at AED 61 billion, increased 7% from 2022 with CASA balances at 75% of deposits
- Credit Quality: Non-performing financing ratio at 7.4% with strong coverage ratio at 123%
- Capital: Tier 1 ratio at 19.1% and Capital adequacy ratio at 20.2% reflect the strong capital position of the Bank
- Headline Financing to Deposit ratio at 85% reflects continued healthy liquidity in the UAE
Hesham Abdulla Al Qassim, Chairman, Emirates Islamic said:
"Emirates Islamic's stellar performance in the first nine months of 2023 boasted a notable net profit surge to AED 1.65 billion, backed by increased funded and non-funded income, and an impressive 83% y-o-y growth in operating profit. As an active participant in the UAE's Year of Sustainability and as Dubai prepares to host COP28, Emirates Islamic proudly stands as the Principal Banking Partner for the event, further solidifying its commitment to sustainability through the launch of Emirates NBD Group's Sustainable Finance Framework.
This framework enables the issuance of green and sustainable debt instruments, including Islamic structures, to support the transition to a low carbon and climate-resilient economy. Additionally, the bank has collaborated with Buna, the Arab payment system, to streamline cross-border transactions in the Arab region, reaffirming its dedication to driving innovation in the Islamic banking sector.
The bank's commitment to innovation has earned it accolades, including the 'Most Innovative Islamic Bank in the UAE' and 'Best Islamic SME Bank in the UAE' at the 2023 International Finance Awards.
Farid Al Mulla, Chief Executive Officer, Emirates Islamic said:
Emirates Islamic's robust Q3 2023 performance showcased a 23% y-o-y profit growth and a remarkable 46% surge in total income, propelling total assets to AED 86 billion, a 15% increase, and customer financing to AED 52 billion, up 7%. The bank recently unveiled the enhanced EI 2.0 Mobile Banking App, offering a Digital Wealth feature for Shariah-compliant stock trading globally. Moreover, a Customer Care Portal was launched on the website to facilitate seamless customer support.
Notably, the bank witnessed growth across all operating segments, with the Sukuk book size hitting a record AED 10 billion, the highest in its history. Emirates Islamic's dedication to fostering local talent is evident through its strong Emiratisation ratio of 36% and an increased representation of women in leadership positions, now at 23%, reflecting its commitment to Diversity and Inclusion.
News Source: Dubai Media Office
