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Emirates Islamic, one of the leading Islamic financial institutions in the UAE, announced its financial results for the period ending June 30, 2019. The Bank reported a net profit of AED 673 million for the first half of 2019, an increase of 39% year-on-year. The strong set of results were supported by balance sheet growth, higher funded income, growth in foreign exchange income, a tighter control on cost and lower cost of risk.
Financial Highlights – H1 2019:
- Net profit of AED 673 million, up 39% y-o-y.
- Total Income of AED 1.3 billion, increased by 10% y-o-y.
- Funded Income margins improved by 21 bps year-on-year to 3.16%, supported by profit rate rise.
- Total assets at AED 61.1 billion, increased by 5% from end 2018.
- Financing and investing receivables at AED 36.6 billion, up 1% from end 2018.
- Customer accounts at AED 43.8 billion, up 5% from end 2018.
- Current and Savings accounts balances, up 3% from end 2018.
- Impaired Financing ratio is at 8.6% with a strong Coverage ratio of 115%.
- Headline financing to deposit ratio at 83% demonstrates a healthy liquidity position.
- Tier 1 capital ratio at 17.8% and Capital adequacy ratio at 18.9%.
Hesham Abdulla Al Qassim, Chairman of Emirates Islamic, Vice Chairman and Managing Director of Emirates NBD commented: “Continuing the growth momentum from 2018, we are pleased that Emirates Islamic has announced another strong set of results for the first half of 2019. Emirates Islamic has driven the growth of Islamic banking in the UAE, setting benchmarks in customer experience and innovation. Our success is a reflection of the increasing appetite for Shari’a-compliant banking in the UAE and the region, and we will continue to support the vision of the Government to make Dubai the global capital of the Islamic economy.”
Hesham Al Qassim added: “As a bank that has always played a key role in the development of the UAE society, and in keeping with the ‘Year of Tolerance’ initiative launched by His Highness Sheikh Khalifa bin Zayed Al Nahyan, we will continue to support charitable and humanitarian activities through the Emirates Islamic Charity Fund”.
Salah Mohammed Amin, Chief Executive Officer of Emirates Islamic commented: “At Emirates Islamic, we continue to deliver robust and profitable growth, recording a net profit of AED 673 million for the first half of 2019, a 39% year-on-year increase. Our performance is a result of core business growth, with both financing and customer deposits higher compared to end 2018. Foreign exchange income showed an upward trend, with a growing number of customers availing foreign exchange services from the Bank. The Bank’s balance sheet remains healthy with a further strengthening in capital due to retained earnings, stable credit quality and liquidity.”
Salah Amin added: “Our investment in technology and infrastructure with ongoing product innovations have contributed in strengthening customer perception of Emirates Islamic as a truly innovative Islamic bank. This was reinforced when we were recognized by Islamic Finance News as the “Most Innovative Islamic Bank” in the UAE. Following on from being the first Islamic bank in the U.A.E. to offer all 3 major wallets, namely Apple Pay, Google Pay and Samsung Pay, we became the first Islamic bank in the world to launch WhatsApp Banking to our customers. Our award-winning Mobile App remains one of the most highly-rated apps among customers, as we constantly update the App with new features and benefits for our customers.”
Salah Amin concluded, “As the official Islamic banking partner of Expo 2020 Dubai, we will aim to expand the footprint of Islamic banking in the UAE and provide innovative solutions that will support the growing needs of individuals, corporates and SMEs.”
The Bank was recognised for its focus on Emiratisation and providing career growth opportunities to UAE Nationals by winning the ‘Human Resources Development’ award from the Emirates Institute for Banking and Financial Studies. Emirates Islamic’s Kunooz Savings Account continues its popularity in the UAE as a preferred option to save for the future and was named ‘Best Banking Product’ by Global Banking & Finance Review.
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