Four-fold profit rise at Emi­rates Is­lamic

Dh498m net profit for nine months ended Septem­ber

Gulf News - - Region -

Emi­rates Is­lamic, one of the lead­ing Is­lamic fi­nan­cial in­sti­tu­tions in the UAE re­ported a nine-month net profit of Dh498 mil­lion, up four-fold com­pared to Dh106 mil­lion for the same pe­riod last year.

For the third quar­ter of this year, Emi­rates Is­lamic re­ported a net profit of Dh111.70 mil­lion com­pared to a net loss of Dh30.8 mil­lion re­ported in the third quar­ter of 2016.

To­tal in­come for the first 9 months (net of cus­tomers’ share of profit and dis­tri­bu­tion to Sukuk hold­ers) de­clined by 6 per cent to Dh1.8 bil­lion com­pared to the same pe­riod last year. This is mainly due to lower one-off gains from the sale of in­vest­ment prop­er­ties.

“Af­ter a chal­leng­ing 2016, our re­sults have shown a strong im­prove­ment. The re­sults re­flect our poli­cies of ef­fec­tive cost man­age­ment com­bined with pru­dent risk man­age­ment. We con­tinue to strin­gently man­age our ex­penses, with op­er­at­ing cost down by 13 per cent com­pared to the same pe­riod last year,” said Ja­mal Bin Gha­laita, chief ex­ec­u­tive of­fi­cer of Emi­rates Is­lamic.

To­tal as­sets

To­tal as­sets at Dh59.9 bil­lion was up by 1 per cent from year-end 2016. Fi­nanc­ing and in­vest­ing re­ceiv­ables at Dh35.3 bil­lion, de­clined by 3 per cent from end 2016.

Cus­tomer de­posits at Dh40.8 bil­lion, de­clined by 1 per cent from end 2016. Cur­rent and Sav­ing ac­counts bal­ances were up 4 per cent from end 2016 and rep­re­sent 70 per cent of to­tal de­posits. Head­line Fi­nanc­ing to De­posits ra­tio at 87 per cent and re­mains com­fort­ably within the man­age­ment’s tar­get range. “Net im­pair­ment al­lowances have im­proved by 41 per cent year on year due to ef­fec­tive re­me­di­a­tion and an im­proved cost of risk as­so­ci­ated with both cor­po­rate and re­tail fi­nanc­ing re­ceiv­ables. Cur­rent and Sav­ings ac­count bal­ances rep­re­sent 70 per cent of to­tal cus­tomer de­posits com­pared with 67 per cent at the be­gin­ning of the year, re­flect­ing the Bank’s fo­cus on im­prov­ing its aver­age cost of fund­ing,” Bin Gha­laita said.

At the close of the third quar­ter of 2017 tier 1 cap­i­tal ra­tio strength­ened to 15.9 per cent and cap­i­tal ad­e­quacy ra­tio ad­vanced to 17.1 per cent with re­tained earn­ings.

Look­ing ahead, the bank said the out­look is pos­i­tive. “We are well po­si­tioned to ben­e­fit from cur­rent mar­ket op­por­tu­ni­ties as a re­sult of our in­vest­ment in tech­nol­ogy and in­no­va­tion. Dig­i­tal trans­for­ma­tion has been a key driver of im­prov­ing the cus­tomer ex­pe­ri­ence at Emi­rates Is­lamic.

Re­cent dig­i­tal ini­tia­tives in­clude the launch of our re­vamped Mo­bile Bank­ing app and Quick­Remit for­eign ex­change trans­fers,” Bin Gha­laita said.

Ja­mal Bin Gha­laita

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