Emirates Islamic reports a 56% increase in profits for the first nine months of 2023

Emirates Islamic made its biggest nine-month profit in its history as profits increased by a remarkable 56% to AED 1.65 billion during the first 9 months of 2023.

The profit increase was driven by higher funded and unfunded revenues reflecting improved business sentiment. Third quarter 2023 revenue grew 46% year-on-year to AED 1.2 billion, helping push profits 23% higher to AED 435 million, reflecting the buoyant regional economy. Islamic Emirates is proud to play an integral part of the economic and commercial development of the UAE.

This is recognized as Islamic Emirates was named “Most Innovative Islamic Bank in the UAE” and “Best SME Islamic Bank in the UAE”, reflecting its innovative customer focus and SME-friendly propositions at the International Awards of Finance 2023.

Key highlights: first nine months of 2023

Strong operating performance thanks to higher funded and unfunded revenues

• Total revenues increased 62% year-over-year driven by higher funded and unfunded revenues
• Expenses up 35% year-on-year as EI invests for future growth
• Operating profit improved 83% year-on-year
• Net profit rose sharply to AED 1,647 million on higher funded and unfunded revenues.
• Net profit margin improved to 4.7% following stable profit rates in the first nine months of 2023

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

• Total assets increased to AED 86 billion while maintaining a strong asset base
• Customer financing of AED 52 billion, up 7% from 2022
• Customer deposits amounted to AED 61 billion, increasing 7% from 2022 and CASA balances accounted for 75% of deposits.
• Credit quality: NPL ratio of 7.4% with a strong coverage ratio of 123%
• Capital: The Tier 1 ratio of 19.1% and capital adequacy ratio of 20.2% reflect the Bank’s strong capital position.
• Core funding/deposit ratio of 85% reflects continued healthy liquidity in the UAE

Hesham Abdulla Al Qassim, President, Islamic Emirates saying:

“Emirates Islam’s stellar performance in the first nine months of 2023 featured a notable rise in net profits to AED 1.65 billion, supported by higher funded and unfunded revenues, and an impressive 83% year-on-year growth in As an active participant in the UAE Year of Sustainability and as Dubai prepares to host COP28, Emirates Islamic is proud to be the event’s lead banking partner, further cementing its commitment to sustainability through the launch of the Emirates NBD Group Sustainable Finance Framework.

This framework enables the issuance of green and sustainable debt instruments, including Islamic structures, to support the transition to a low-carbon and climate-resilient economy. Additionally, the bank has collaborated with Buna, the Arab payments system, to streamline cross-border transactions in the Arab region, reaffirming its dedication to driving innovation in the Islamic banking sector.

The bank’s commitment to innovation has earned it accolades including “Most Innovative Islamic Bank in the UAE” and “Best Islamic Bank for SMEs in the UAE” at the 2023 International Finance Awards.

Farid Al Mulla, CEO, Islamic Emirates saying:

Emirates Islamic’s strong performance in Q3 2023 showed 23% year-on-year profit growth and a notable 46% increase in total revenue, boosting total assets to AED 86 billion, an increase of 15%, and customer financing at AED 52 billion, an increase of 7%. The bank recently introduced the enhanced EI 2.0 mobile banking app, which offers a Digital Wealth feature for global Shariah-compliant stock trading. Additionally, a customer support portal has been launched on the website to facilitate seamless customer support.

Notably, the bank witnessed growth across all operating segments, with the size of Sukuk books reaching a record AED 10 billion, the highest in its history. Emirates Islamic’s dedication to nurturing local talent is evident through its strong Emiratisation rate of 36% and increased representation of women in leadership roles, now at 23%, reflecting its commitment to diversity and inclusion .

News source: Dubai Press Office