Emirates Islamic Q1 profit surges 62%

Emirates Islamic recorded a first-quarter net profit of Dh342 million, a 62 per cent year-on-year jump driven by a 14 per cent growth in income and a 72 per cent improvement in provisions.

The leading Islamic bank said on Thursday its operating expenses surged by 10 per cent y-o-y as impairment allowances dropped 72 per cent.

The bank’s operating profit increased 17 per cent while strong capital and liquidity combined with a healthy deposit mix enabled the lender to support customers, Emirates Islamic said in a statement.

Total assets rose 8.0 per cent to Dh70.1 billion while customer financing increased 66 per cent to Dh 45.2 billion. Customer deposits rose nine per cent to Dh51.4 billion with CASA balances at 80 per cent of total deposits.

Hesham Abdulla Al Qassim, chairman, Emirates Islamic, said the bank’s net profit growth was driven by a 14 per cent growth in income and a 72 per cent improvement in provisions.

“As the UAE steadily delivers higher economic growth, customer confidence is at an all-time high. This was reflected in an increased appetite for retail products, growth in card spending, and nine per cent growth in customer deposits.”

Salah Mohammed Amin, chief executive officer of Emirates Islamic, said the bank’s balance sheet remains strong with total assets growing by 8.0 per cent during Q1 2022 to reach Dh70.1 billion, “demonstrating the strength of our operating capabilities and prudent risk management. Our strong results are a reflection of our relentless focus on providing innovative financial solutions to our customers while enhancing the overall customer service experience.”

— issacjohn@khaleejtimes.com