Emirates Islamic first-half profit surges 23% on improved business sentiment

Emirates Islamic (EI) said on Thursday its net profit jumped 23 per cent to Dh701 million year-on-year in the first half of 2022 on higher funded and non-funded income supported by a significant reduction in the cost of risk, reflecting improved business sentiment.

In a statement, the bank said its total income surged 16 per cent y-o-y basis, driven by higher funded and non-funded income while expenses increased 13 per cent y-o-y basis as the bank invests for future growth while operating profit improved 19 per cent y-o-y basis.

EI’s impairment allowances declined 12 per cent y-o-y basis reflecting improved business sentiment, said the statement.

Hesham Abdulla Al Qassim, chairman of EI, said the bank benefitted from a significant reduction in the cost of risk supported by a strong economy.

Salah Mohammed Amin, CEO, said a 14 per cent growth in total assets to Dh74 billion during the first half of 2022 demonstrated the bank’s support for a strong UAE economy.

“Emirates Islamic was among the first Islamic banks to integrate digital innovation and our digital focus continues to reap us rich rewards in terms of customer loyalty and market share,” said Amin.

The bank’s total assets grew strongly by 14 per cent to Dh74 billion in first half of 2022 as customer financing increased 11 per cent from 2021-end to Dh47 billion. Customer deposits rose 15 per cent from end 2021 to Dh 54 billion, with CASA balances at 76 per cent of deposits.

— issacjohn@khaleejtimes.com