Dubai Emirates Islamic, an Islamic financial institution belonging to the Emirates NBD Group reported full year net profit of Dh105.6 million for 2016 compared to Dh640.6 million reported in 2015.
Total Income for 2016 (net of customers’ share of profit and distribution to sukuk holders) grew by 3 per cent to Dh2.5 billion during the year.
“In the face of challenging markets, Emirates Islamic has proven its resilience with sound financial results. With a stronger balance sheet and a focused medium term strategy, we shall continue to cement our position as a leader in the nation’s Islamic banking sector.” said Hesham Abdulla Al Qassim, Chairman of Emirates Islamic, Vice Chairman and Managing Director of Emirates NBD.
Total assets at Dh59.2 billion grew 11 per cent from end 2015. Financing and investing receivables at Dh36.3 billion were up 6 per cent from end 2015. The bank’s customer deposits increased by 5 per cent to Dh41.1 billion from 2015 as current and savings accounts (CASA) balances, up 8 per cent from end 2015.
“This year, we concentrated on improving our liabilities mix leading to a significant increase in the Bank’s current and saving accounts balances. Our commitment to delivering a customer-first experience has resulted in a 5 per cent increase in deposits and a greater demand for our product offerings, with total assets increasing by 11 per cent during 2016,” said Jamal Bin Ghalaita, Chief Executive Officer of Emirates Islamic.
The bank’s total cost at Dh1.1 billion, increased by 11 per cent compared with the previous year. However, costs declined significantly over last three quarters of 2016 as cost control measures were implemented during the year.
At the close of 2016, headline financing to deposits ratio was at 88 per cent. Impaired financing ratio stands at 9 per cent and coverage ratio advanced to 96.9 per cent.
