Emirates Islamic reaps innovation dividend

Emirates Islamic, the Islamic financial institution that is part of the Emirates NBD Group, reported a full-year net profit of Dh924 million, up 32 per cent compared to 2017 figures. Total income for 2018 increased 3 per cent to Dh2.5 billion as the bank reported total assets of Dh58.4 billion, down 6 per cent from the 2017 year-end tally.

“Our strong performance this year has been capped with the highest ever recorded net profit of Dh924 million, since our inception in 2004. In a short span of time, the bank has cemented its position as a leading Islamic bank in the UAE,” said Hesham Abdullah Al Qasim, chairman of Emirates Islamic, vice-chairman and managing director of Emirates NBD.

The bank’s financing and investing receivables rose 7 per cent year-on-year to Dh36.2 billion. Customer deposits at Dh41.6 billion, remained stable compared to the prior year figures, with current and saving accounts balances representing 66 per cent of total customer deposits.

“Our success in 2018 is the result of our focus on technological innovation and service excellence, and comes on the back of growth in the bank’s fin-ancing receivables, coupled with an increase in core fee income and an improved cost of risk,” said Salah Mohammad Amin, chief executive officer of Emirates Islamic.

The bank’s impaired financing ratio improved to 8.2 per cent whilst coverage ratio strengthened to 120.5 per cent.

At the end of 2018, the bank’s financing-to-deposits ratio was at 87 per cent. Capital ratios, as calculated under the Basel III framework, were strong, with the common equity Tier-1 ratio at 17.1 per cent and the capital adequacy ratio at 18.2 per cent.