Four-fold profit rise at Emirates Islamic
Dh498m net profit for nine months ended September
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.