Core income growth lifts Emirates Islamic
Bank’s first quarter result up by 6% to Dh209m
Emirates Islamic reported a net profit of Dh209 million, for the first quarter of 2018, up 6 per cent year on year, supported by growth in core income, efficient cost management and an improved cost of risk.
The bank’s total income of Dh590 million, declined by 1 per cent quarter on quarter and 2 per cent year on year due to lower gains from the sale of investments. Total assets at Dh57.8 billion, declined by 7 per cent from year-end 2017 as the bank reduced the amount of cash placed with other banks.
The bank’s balance sheet remains strong with improvements in credit quality and liquidity.
“The results reflect our continued focus in providing our customers with the best in Islamic banking products and services, growth in core income combined with prudent provisioning. An enhanced collection drive and reduced cost of risk resulted in 24 per cent lower impairments as compared to the same period last year,” said Jamal Bin Ghalaita, Chief Executive Officer of Emirates
Islamic.
Financing and investing receivables at Dh33.7 billion, remains flat from end of 2017. Customer accounts at Dh43.4 billion, is up 4 per cent from end 2017. Current and saving accounts balances also up 3 per cent from end 2017.
“We have focused on improving our liabilities mix, leading to a 3 per cent increase in current and savings accounts balances which represent 67 per cent of total customer accounts. The Islamic banking sector continues to grow steadily in the UAE and we are well positioned to take advantage of this growth to increase our market share. Additionally, our ongoing investments in the latest technology and digital banking solutions have helped us provide our customers with a superior service experience,” said Bin Ghalaita.
Impairment charge of Dh102 million improved 14 per cent quarter on quarter and — and 24 year on year. Impaired Financing ratio improved to 8.4 per cent from 10.3 per cent as at end of 2017. Impaired financing coverage ratio strengthened to 123.6 per cent from 92.2 per cent as at end of 2017. Headline financing to deposit ratio at 77.6 per cent demonstrates a healthy liquidity position.
At the close of the quarter, the bank’s tier 1 capital ratio was at 15.2 per cent and capital adequacy ratio at 16.3 per cent.