Dubai: Emirates Islamic reported a net profit of Dh106 million for the first 9 months of 2016 compared to Dh534 million for the same period last year.
The bank attributed the decrease in net profits to prudent provisioning on the legacy and the small and medium enterprises (SME) portfolio.
Total Income for the first 9 months (net of customers’ share of profit) grew by 6 per cent and 8 per cent (adjusted for one offs) to Dh1.92 billion compared to the same period last year.
Total assets were up 12 per cent to Dh 59.6 billion compared to year-end 2015. Financing and investing receivables were at Dh 37.4 billion, up 9 per cent from end 2015. Customer deposits grew 5 per cent to Dh 41.3 billion from end 2015. Headline financing to deposits ratio at 90.5 per cent and remains comfortably within the management’s target range. At the close of 9-months impaired financing ratio was at 9.1 per cent and coverage ratio advanced to 93.5 per cent.
“Emirates Islamic’s results this quarter reflect the prudent provisioning and secure financial policies of the bank. In light of the current economic atmosphere, the bank aims to first strengthen its balance sheet and then move into a conservative growth strategy”, said Jamal Bin Ghalaita, Chief Executive Officer of Emirates Islamic.