Emirates Islamic achieved its highest ever half-year net profit, with a remarkable 37% increase to AED1.7 billion ($460 million) propelled by superior levels of both funded and non-funded income.

Total income saw a notable 15% improvement, reaching 2.7 billion, while operating profits surged by 40%. The bank’s strong capital and liquidity base enabled the balance sheet to surpass the AED100 billion landmark.

As Emirates Islamic celebrates its 20th anniversary, its valuable contribution to the development of the UAE’s economy is recognised by conferring it with the ‘Best Overall Islamic Bank’ and ‘Most Innovative Islamic Bank’ awards at the Islamic Finance News Awards 2024 and ‘Most Innovative Islamic Bank’ award at the prestigious Euromoney Islamic Finance Awards 2024.

Expenses down

The bank’s expenses decreased 20% y-o-y. Cost to income ratio was at 28.8%. Impairment allowances decreased by 46% y-o-y on buoyant and healthy UAE economy.

Operating profit improved 40% y-o-y and net profit sharply increased to AED1.7 billion on higher income and lower impairment allowances. Net profit margin was at 4.56%.

The bank’s total assets surpassed the AED100 billion mark at AED102 billion, increasing 16% in 2024. Customer financing was at AED62 billion, increasing 15% from end 2023.Customer deposits were at AED70 billion, increasing 14% from end 2023 with Current and Saving Account balances at 73% of deposits.

Non-performing financing ratio

Non-performing financing ratio improved to 5.2% with strong coverage ratio at 135%. Common Equity Tier 1 ratio at 18.4% and Capital adequacy ratio at 19.6% reflect the rock solid capital base of the bank.

Headline Financing to Deposit ratio at 88% comfortably within the management’s target range.

Farid AlMulla, Chief Executive Officer of Emirates Islamic said: “Strong capital and liquidity, combined with a healthy deposit mix, enabled the Bank to continue supporting customers as customer financing increased by 15% to AED62 billion, testimony to Emirates Islamic’s successful, customer-centric strategy. The bank's strategic investment in technology and innovation contributed to Emirates Islamic being recognised as one of the UAE's leading Islamic banks, playing a prominent role in the country's progress.

“We continue to introduce innovative ESG-linked financial solutions and Emirates Islamic launched its first ever 5-Year $750 million Sustainability Sukuk, reaffirming our commitment to sustainable Islamic financing and marking a significant milestone in our Group wide sustainability journey.”

Digital banking

Emirates Islamic continues to lead in digital banking innovation. The launch of EI + has enhanced the banking experience for customers, with over 150 features including digital account opening. Earlier this year, reinforcing the bank’s digital-first approach, Emirates Islamic became the first Islamic bank in the UAE to introduce a Shariah-compliant digital wealth and equity trading platform on our EI + Mobile Banking App. Digital Wealth provides a valuable opportunity as an investment tool in global and local Shariah-compliant stocks and mutual funds.

The bank is dedicated to pioneering Shariah-compliant products and services to meet the growing demand for ethical banking solutions. Emirates Islamic became the first Islamic bank in the region to launch Fractional Sukuk, an innovative new product that broadens investment opportunities for customers.

As the preferred bank for UAE nationals, Emirates Islamic is dedicated to delivering innovative, value-driven propositions and superior service to our customers. It recently revamped our Emarati Visa Signature Credit Card, with enhanced tailored features and exclusive privileges to meet the preferences and lifestyle needs of UAE National customers.

“We are proud that the bank’s Switch Cashback Visa Credit Card was recognised as the ‘Best Islamic Card’ by The Digital Banker Global Islamic Finance Awards 2024. The innovative Card offers customers the flexibility to choose and instantly switch between travel and lifestyle categories,” he added. 

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