Emirates Islamic reports Dh155 million Q1 net profit

Dubai: Emirates Islamic an Islamic financial institution belonging to Emirates NBD Group on Monday reported a net profit of Dh155 million for the first quarter of 2020.

The bank’s total income of Dh641 million was down by 3 per cent in Q1 2020, year-on-year.

Total assets at Dh62.9 billion, decreased by 3 per cent from end 2019. Financing and investing receivables at Dh39 billion,increased by 4 per cent from year-end 2019. Headline financing to deposit ratio at 87 per cent showed healthy liquidity position.

“This is a challenging time for businesses everywhere as we deal with the significant impact of COVID-19, combined with low oil prices and negative market sentiment. Net profit is lower as we have made additional impairments allowances to boost coverage in anticipation of a deterioration in credit quality in subsequent quarters,” said Salah Mohammed Amin, Chief Executive Officer of Emirates Islamic.

Emirates Islamic provisions during the first quarter of 2020 reached Dh206 million, an increase of Dh224 million compared to the same period last year. Impaired financing ratio was at 7.3 per cent at the end of the first quarter 2020 with strong coverage ratio of 126.5 per cent.

The bank reported Tier 1 capital ratio at 18.7 per cent and capital adequacy ratio at 19.8 per cent at the close of Q1 2020.