Emirates Islamic’s net profit rises Emirates Islamic’s net profit rises

Emirates Islamic reports net profit of AED 342 million for Q1 2022

Dubai, 21 April 2022: Emirates Islamic, a leading Islamic financial institution in the UAE, today announced its results for the period ending 31 March, 2022.

Total Income
AED 652 million
↑14% y-o-y
AED 281 million
↑10% y-o-y
AED 30 million
↓72% y-o-y
Net Profit
AED 342 million
↑62% y-o-y
2.90 %
Cost: Income Ratio
43.0 %
NPF Ratio
7.6 %
CET-1 Ratio
17.7 %

Key Highlights – Q1 2022

Strong operating performance on higher income coupled with reduction in provisions

  • Total income up 14% y-o-y driven by higher funded and non funded income
  • Operating expenses increased by 10% y-o-y
  • Impairment Allowances reduced 72% y-o-y
  • Operating profit improved 17% y-o-y
  • Net profit increased to AED 342 million
  • Net profit margin at 2.90%

Strong capital and liquidity combined with a healthy deposit mix enabled the Bank to support customers

  • Total assets remained robust at AED 70.1 billion, increased 8% from end 2021
  • Customer financing at AED 45.2 billion, increased 6% from end 2021
  • Customer deposits at AED 51.4 billion, increased 9% from end 2021 with CASA balances at 80% of total deposits
  • Credit Quality: Non-performing financing ratio improved to 7.6% with strong coverage ratio at 117.6%
  • Capital: Tier 1 ratio at 17.7% and Capital adequacy ratio at 18.8% reflect the strong capital position of the Bank
  • Headline Financing to Deposit ratio at 88%, remains within the management’s target range

Hesham Abdulla Al Qassim, Chairman, Emirates Islamic said:

  • We are very pleased to announce a strong performance by Emirates Islamic in the first quarter of 2022. The Bank’s net profit grew by 62% year-on-year to AED 342 million, driven by a 14% growth in income and a 72% improvement in provisions.
  • As the UAE steadily delivers higher economic growth, customer confidence is at an all-time high. This was reflected in increased appetite for retail products, growth in card spending and 9% growth in customer deposits.
  • We were honoured to be a part of Expo 2020 Dubai, a milestone event for the UAE and the Arab world. Demonstrating our pioneering vision for the future of global banking through our on-site presence ‘Future Banking by Emirates NBD and Emirates Islamic’, we enabled millions of visitors from around the world to experience innovative and futuristic concept-driven banking exhibits to meet the evolving needs of customers.
  • As a leading Islamic bank in the region, we were proud to support the landmark DEWA IPO, one of the largest and most significant listings in the region.
  • Emirates Islamic supported those in need by contributing AED 51 million in 2021 through the Emirates Islamic Charity Fund. The bank will continue to support a number of charitable institutions and deserving causes in 2022, especially during the holy month of Ramadan.

Salah Mohammed Amin, Chief Executive Officer, Emirates Islamic said:

  • Emirates Islamic’s balance sheet remains strong with total assets growing by 8% during Q1 2022 to reach AED 70.1 billion, demonstrating the strength of our operating capabilities and prudent risk management.
  • Total income for the quarter was 14% higher at AED 652 million, while Customer financing grew by 6% to AED 45.2 billion. We kept investing as we look to expand our reach and footprint.
  • 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.
  • In line with our vision to be the most innovative Shariah-compliant bank for our customers, people, and communities, Emirates Islamic is at the forefront of Islamic Banking development. We will continue to play a pioneering role in the Islamic banking sector, helping further increase the uptake of Islamic banking products in the UAE.
  • The success of Expo 2020 Dubai delivered a significant economic boost to the region and, as the official Islamic banking partner Emirates Islamic was proud to support the event.