Emirates Islamic 2025 net profit jumps 19% to Dh3.3 billion on lending and deposit growth

Dubai: Emirates Islamic reported a record profit before tax of Dh3.9 billion in 2025, up 26% from the previous year, as strong financing demand, deposit inflows, and disciplined cost management drove performance across the business.

Total income increased 11% to Dh6 billion, supported by growth in funded and non funded income. Net profit rose 19% to Dh3.3 billion, reflecting sustained momentum through the year and an improving credit environment.

Financing and deposits power balance sheet expansion

The Islamic lender delivered sharp balance sheet growth during the year, with total assets rising 31.2% to Dh146 billion. Customer financing increased 26% to Dh89 billion, while customer deposits climbed 33% to Dh102 billion, supported by a strong current and savings account mix that represented 67% of total deposits.

Liquidity remained healthy, with a financing to deposit ratio of 87%, providing capacity to support further customer growth.

Hesham Abdulla Al Qassim, Chairman of Emirates Islamic, said the bank closed the year with strong momentum.

“Emirates Islamic concluded 2025 with a record financial performance, driven by strong growth across our core segments and product offerings serving individuals, small businesses and corporates,” he said. “The Bank’s exceptional performance reflects sustained momentum throughout the year, driven by a strong balance sheet and a record profit before tax of Dh3.9 billion.”

Credit quality strengthens as impairments fall

Credit metrics improved through 2025, with the non performing financing ratio declining to 2.6%. Impairment allowances dropped 68% year on year, reflecting better asset quality and a supportive operating environment.

Capital levels remained solid, with a CET 1 ratio of 14.7% and a capital adequacy ratio of 15.8%, underlining the bank’s capacity to fund growth while maintaining resilience.

Income growth offsets higher investment spend

Expenses rose 14% to Dh1.9 billion, reflecting continued investment in technology and talent. Even so, the cost to income ratio stood at 31%, supported by operating leverage from income growth.

Farid AlMulla, CEO of Emirates Islamic, said the performance reflected both scale and innovation.

“Emirates Islamic’s outstanding financial performance in 2025 underscores the Bank’s leadership among UAE Islamic banks, with total assets growing by 31.2% to Dh146 billion,” he said. “Driven by higher funded and non funded income, total income grew by 11% to Dh6 billion in 2025.”

Innovation and customer reach remain central

During the year, the bank introduced several new products, including a sustainability linked financing sukuk and the Islamic banking sector’s first treasury repo transaction. Emirates Islamic also expanded its retail offering with the launch of the Alpha Youth Account, aimed at customers under 18.

Mohammad Kamran Wajid, Deputy CEO, said service quality and digital delivery remained priorities.

“2025 was a transformative year for Emirates Islamic, marked by continued strengthening of our financial performance driven by sustainable growth and innovation,” he said.