Dubai, UAE — Emirates Islamic, a leading Islamic financial institution in the UAE, has reported a record net profit of AED601 million ($163 million) for the first three months of 2023, an increase of 76 percent year on year.
The bank’s total income surged by 74 percent, driven by higher core revenues due to improved financing and deposit mix with higher profit rates, coupled with a rise in non-funded income, the bank said.
Operating profit increased by 103 percent year on year. The strong performance was attributed to higher funded income and non-funded income, although operating expenses increased by 34 percent year on year due to the bank’s investment in future growth.
Total assets grew by 4 percent from the end of 2022 to AED 77.9 billion, while customer financing and customer deposits increased by 3 percent and 2 percent respectively from the end of 2022. The bank’s credit quality also improved, with the non-performing financing ratio dropping to 6.8 percent and a strong coverage ratio of 133 percent.
Hesham Abdulla Al Qassim, Chairman of Emirates Islamic, said the bank’s growth in net profit and total income was driven by increased customer confidence and a rise in retail product demand.
He also highlighted the successful pricing of the Bank’s inaugural AED 1 billion dirham-denominated sukuk, which will expand financing options for UAE corporations with Shariah-compliant needs and enhance the development of the Ministry of Finance’s dirham yield curve.