Emirates Islamic net profit rises 76% to a record Dh601 million for Q1-2023
Impairment Allowances increased by 424% year-on-year due to financing growth
Dubai: Emirates Islamic delivered a record net profit of Dh601 million for the first three months of 2023 as total income grew 74 per cent, the lender said on Thursday.
Total income for the period stood at Dh1.13 billion, up 74 per cent year-on-year driven by rising core revenues.
“The Bank announced the successful pricing of its inaugural Dh1 billion dirham-denominated sukuk, the first such sukuk by a UAE bank,” said Hesham Abdulla Al Qassim, Chairman, Emirates Islamic. “The three-year issue attracted a strong orderbook and was 2.5 times oversubscribed which allowed the Bank to tighten the profit rate to 5.05 per cent, at a spread of 67 basis points over UAE Government Treasuries.”
As the UAE steadily delivers higher economic growth, customer confidence is at a high. This was reflected in increased appetite for retail products, growth in card spending and higher customer deposits.
Total assets during the period increased by 4 per cent from the end of 2022 to Dh77.9 billion. Customer financing was up 3 per cent to Dh49.6 billion, while customer deposits increased by 2 per cent to Dh57.3 billion with current account and savings account balances at 75 per cent of total deposits.
“As Emirates Islamic continues to drive innovation in the Islamic banking sector, the Bank launched a global FinTech accelerator campaign in collaboration with the world’s leading innovation platform, Plug and Play Abu Dhabi,” said Salah Mohammed Amin, CEO, Emirates Islamic. “The campaign is a call to action for leading Islamic FinTechs and financial startups with propositions that can enhance customer journeys across SME financing, trade finance and financial wellbeing.”
Further reinforcing our commitment to SMEs, the Bank launched its “Trade More, Earn More” campaign to incentivise small and medium-sized businesses to use our trade solutions suite for optimal import and export business transactions.