Dubai: Emirates Islamic, the Islamic bank belonging to Emirates NBD Group, on Tuesday reported a net profit of Dh702 million, up 565 per cent compared to 2016.
Total income for 2017 (net of customers’ share of profit and distribution to sukuk holders) declined by 4 per cent to Dh2.4 billion.
“Emirates Islamic has delivered strong results and the impressive performance in 2017 is demonstrated with a six-fold increase in net profit. The bank significantly increased its returns to shareholders with return on equity (ROE) of 10 per cent this year, up from 2 per cent in 2016,” said Hesham Abdulla Al Qassim, Chairman of Emirates Islamic, Vice Chairman and Managing Director of Emirates NBD.
Bank’s total assets at Dh61.9 billion, increased by 4 per cent from end 2016. Financing and investing receivables at Dh33.8 billion, declined by 7 per cent. Customer deposits at Dh41.8 billion, increased by 2 per cent from end 2016. Current and Saving accounts (CASA) balances increased by 1 per cent from end 2016 and represent 68 per cent of total deposits.
Decline in operating costs and impairments boosted net profits last year. The bank’s impairment allowance declined sharply to Dh680.78 million last year to Dh1.29 billion in 2016.
“In 2017, we focused on consistent control of operating costs, which improved by 8 per cent over last year. With a lower cost of risk and an enhanced collection drive, net impairment allowances have improved by 48 per cent year-on-year,” said Jamal Bin Ghalaita, Chief Executive Officer of Emirates Islamic
EI’s headline financing to deposits ratio at 81 per cent, remains healthy and within the management’s target range. 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.