Emirates Islamic H1 operating profit rises 10% to Dh2.2 billion

Dubai: Emirates Islamic increased customer financing by 9.1% during the first six months of 2026 to Dh97 billion, while deposits grew 8.3% to Dh110.6 billion.

The Islamic lender reported an operating profit of Dh2.2 billion for the period, representing an increase of 10% from a year earlier, supported by higher funded and non-funded income, asset growth and cost management.

Net profit reached Dh1.7 billion, while total income increased 8% year on year to Dh3.2 billion. The bank maintained a net profit margin of 3.1%.

Assets rise to Dh153.8 billion

Total assets increased 5.5% from the end of 2025 to Dh153.8 billion during the first half, supported by growth in customer financing and deposits.

Current and savings account balances represented 65% of total deposits, providing the bank with a large proportion of lower-cost customer funding.

Farid AlMulla, CEO of Emirates Islamic, said, “Our strong capital, liquidity and diversified funding base continue to support customer growth, driving a 9.1% increase in financing and an 8.3% increase in deposits during the period.”

The bank’s headline financing-to-deposit ratio stood at 88%, remaining within management’s target range.

Expenses increase amid investment

Operating expenses rose 3% year on year to Dh900 million, reflecting continued investment in the bank’s growth plans. Its cost-to-income ratio stood at 29.1%.

Impairment allowance charges reached Dh251 million during the first half.

The non-performing financing ratio stood at 2.5%, while the bank maintained a coverage ratio of 157.5%.

Emirates Islamic reported a common equity tier-one ratio of 14.8% and a total capital adequacy ratio of 15.9%.

Digital gold and silver investments launched

Emirates Islamic became the first Islamic bank in the UAE to offer digital gold and silver investments through its EI+ mobile application, providing customers with access to Sharia-compliant investment products.

The bank also launched what it described as the UAE’s first Sharia-compliant Certificate of Deposit Programme to broaden investor options, expand its international reach and diversify its funding sources.

Sustainable finance remained a focus during the period, with the bank completing several financing facilities linked to environmental, social and governance targets.

The lender also introduced Sharia-compliant commodity hedging products, including profit-rate hedging and foreign exchange options, to help business customers manage commodity price movements and protect cash flows.