Emirates Islamic has reported a significant increase in net profits, reaching AED804 million ($218.8m) in the first nine months of 2021, driven by higher non-funded income and a reduction in the cost of risk.
The results reflect a 14 percent increase from the opening nine months of 2020 and 43 percent growth from Q3 of last year.
“We are pleased to announce a strong set of financial results for the first nine months of 2021 underlying the growing importance of Islamic banking. We aim to set new milestones in Islamic banking and support the government’s goal of making Dubai the global capital of the Islamic economy,” said Hesham Abdulla Al Qassim, chairman.
Emirates Islamic’s total assets remained robust at AED66bn ($17.9bn) and customer financing increased 4 percent from 2020, reaching AED42.4bn ($11.5bn).
“As a key contributor to the development of the overall Islamic finance sector, Emirates Islamic has asserted its position as a leading financial institution in the UAE, and this is reflected in our financial performance,” said Salah Mohammed Amin (pictured below), chief executive officer.
“Providing a superior banking experience to customers remains a key focus for us and we continue to strengthen our value proposition through best-in-class innovative digital-led offerings and investment in the latest technology,” he added.
Other key-highlights from Emirates Islamic results include:
- Expenses increased 1 percent y-o-y and 8 percent on Q3-2020
- Operating profit improved 28 percent y-o-y and 94 percent on Q3-2020
- Net profit margin at 2.59 percent following stable profit rates in the first nine months of 2021
- Customer deposits at AED48.9bn ($13.3bn), increased 4 percent from 2020 with CASA balances at 76 percent of deposits
- Credit quality: Non-performing financing ratio improved to 8.4 percent with strong coverage ratio at 108 percent
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