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Dubai / WAM
Emirates Islamic’s (EI) bank net profit jumped to AED1.054 billion for the first nine months of 2022 on higher funded and non-funded income with a significant reduction in the cost
of risk, reflecting improved business sentiment.
In the period from January-September, the bank recorded a strong operating performance on higher funded and non-funded income coupled with reduction in cost of risk, with the total income up 22 percent year-on-year (y-o-y) driven by higher funded and non-funded income. Meanwhile, expenses increased 22 percent y-o-y, Impairment Allowances decreased 23 percent y-o-y reflecting improved business sentiment, and operating profit grew 21 percent y-o-y. Net profit increased to AED 1,054 million on the back of higher funded and non-funded income, disciplined cost management action and lower impairment allowances, while net profit margin improved to 3.09 percent following stable profit rates in the first nine months of 2022.
Moreover, EI’s total assets increased to AED73 billion maintaining a solid asset base, customer financing stood at AED48 billion, rising 12 percent from 2021, with customer deposits landing at AED 55 billion, an increase of 16 percent compared to 2021.
Hesham Abdulla Al Qassim, Chairman of Emirates Islamic, commented, “We are extremely pleased with our performance for the first nine months of 2022 as total income grew 22 percent year-on-year and net profit jumped to AED1,054 million. Our results are a strong indication of Emirates Islamic’s role as a key driver in the growth of Islamic banking in the UAE, empowering our customers to benefit from a buoyant UAE economy.
“Following earlier IPOs on the Dubai Financial Market, we were pleased in the third quarter to support Salik and act as a receiving bank in its very successful public offering, as we remain committed to providing seamless access for local investors to the UAE capital
markets,†Al Qassim said.
“We have consistently invested in innovation and infrastructure, the results of which are now evident in our financial performance and strong balance sheet,†added Al Qassim.
Shariah-compliant banking continues to set new milestones in the overall banking sector, and Emirates Islamic aims to contribute substantially to the sector’s growth and the government’s goal of making Dubai the global capital of the Islamic economy,†added Al Qassim.