Emirates Islamic posts Dh569m H1 profit

Dubai - The bank continued to see an improvement in performance across business lines with a 3.0 per cent y-o-y increase in total income.

Emirates Islamic recorded on Wednesday Dh569 million net profit for the first half of 2021 on the back of “higher non-funded income, effective cost management and a significant reduction in the cost of risk reflecting improved business sentiment.”

Total income went up by 3.0 per cent year-on-year (y-o-y) and 5.0 per cent quarter-on-quarter (q-o-q) due to the marked recovery in non-funded income while expenses declined 2.0 per cent y-o-y and increased 6.0 % q-o-q, the bank said in a statement

Impairment allowances declined 86 per cent y-o-y and 120 per cent q-o-q with a lower cost of risk of 59 bps following proactive provisioning in previous quarters as operating profit improved 9.0 per cent y-o-y and 5.0 per cent q-o-q. The bank also reported a net profit margin of 2.49 per cent following stable profit rates in the first half of 2021.

Strong capital and liquidity combined with a healthy deposit mix enable the bank to support customers, EI said in a statement.

Total assets remained robust at Dh68 billion maintaining a strong asset base. Customer financing increased 2.0 per cent to Dh41.5 billion while customer deposits surged 4.0 per cent to Dh48.8 billion, with CASA growing to 78 per cent of deposits.

The bank’s non-performing financing ratio improved to 8.7 per c per cent. Tier 1 ratio was at 18.4 per cent and capital adequacy ratio was at 19.5 per cent, reflecting the strong capital position of the bank, said the statement.

Hesham Abdulla Al Qassim, chairman of the bank, said the strong first-half profit highlights Emirates Islamic’s key role in the growth of Islamic banking in the UAE.

“On the digital front, we will continue to innovate by launching new products, channels and services that enhance our customers’ lifestyles and demonstrate our leadership in digital banking. As we prepare to welcome millions of international visitors at Expo 2020 Dubai, we look forward to showcasing the modern face of Sharia compliant banking to the world,” said Al Qassim.

Salah Mohammed Amin, chief executive officer, said the bank continued to see an improvement in performance across business lines with a 3.0 per cent y-o-y increase in total income on the back of higher non-funded income reflecting improved business conditions.

“As the UAE economy continues to recover, we remain confident in our position as the UAE’s leading Islamic bank. Emirates Islamic has always played an integral part in the UAE’s growth and development. In our role as the official Islamic Banking Partner of Expo 2020 Dubai, we are committed to contributing substantially to the economy’s growth and expanding the importance of Islamic banking in the UAE,” said Amin. — issacjohn@khaleejtimes.com