EI posts 6-fold jump in net profit

dubai — Emirates Islamic (EI), a leading Islamic financial institution in the UAE, announced on Tuesday a six-fold increase — the highest ever recorded net profit of Dh702 million — and the highest ever recorded total assets of Dh61.9 billion in 2017.

Net profit for 2017 increased 565 per cent as total income declined by four per cent to Dh 2.4 billion, the bank said.

The bank’s total assets increased by four per cent to Dh61.9 billion, while customer deposits rose two per cent to Dh41.8 billion. Current and Saving accounts balances increased by one per cent from end 2016 and represent 68 per cent of total deposits.

Financing and investing receivables at Dh33.8 billion, declined by seven per cent while headline financing to deposits ratio at 81 per cent, remains healthy and within the management’s target range, the bank said in a statement.

Capital ratios, as calculated under the Basel III framework, were strong with the Common Equity Tier 1 ratio at 16.2 per cent and the Total Capital ratio at 17.4 per cent, Hesham Abdulla Al Qassim, Chairman of Emirates Islamic, Vice Chairman and Managing Director of Emirates NBD, said.

“Emirates Islamic has delivered strong results and the impressive performance in 2017 is demonstrated with a six-fold increase in net profit to Dh702 million. The bank significantly increased its returns to shareholders with Return on Equity of 10 per cent in 2017, up from two per cent in 2016. Over the years, Emirates Islamic has asserted its position as a leading financial institution in the UAE, with a vital contribution to the development of the overall Islamic finance sector,” said Al Qassim.

He said Islamic banking in general and Emirates Islamic in particular would be playing a significant role, with the UAE economy set to grow steadily in 2018.

—issacjohn@khaleejtimes.com