Emirates Islamic amplifies digitisation push, to shut five branches in 2025

Dubai: Emirates Islamic will close five branches by the end of 2025 as part of a wider rationalisation strategy that shifts more investment toward digitisation and customer experience enhancements. Deputy Chief Executive Officer Mohammad Kamran Wajid said the move is aimed at redeploying resources more efficiently rather than shrinking the bank’s physical footprint.

“We are rationalising our branches to save on the cost, which we can reinvest anywhere else, and that includes opening new branches if it is required,” he told reporters during a media roundtable at the bank’s Dubai headquarters. He stressed the decision should not be interpreted as a retreat from physical banking. “We are not going to eliminate physical presence.”

Closing legacy sites, reallocating investment

Wajid said the five targeted branches are legacy locations that sit too close to Emirates Islamic or Emirates NBD branches, creating overlaps after the integration of systems across the wider group. The review is driven by profitability and customer needs.

“If I have a branch which is incurring X cost, and if I invest that same X into my digitisation strategy, probably we can be more efficient,” he said. Branches may also be relocated to high-growth areas, particularly in the northern emirates, where population expansion is stronger.

He emphasised that no job losses are expected as part of the consolidation. “We firmly believe in talent retention,” he said. Staff from affected branches will be absorbed into other roles across the bank.

Fastest-growing bank in the UAE

The restructuring comes as Emirates Islamic posts its strongest performance to date. The bank’s assets have risen from Dh115 billion a year ago to Dh138 billion today. “We are the fastest growing bank in the country across conventional and Islamic,” Wajid said.

Profit for the first nine months reached Dh3.2 billion before tax, placing the bank seventh nationwide by profitability and eighth among all UAE lenders by assets.

Since its conversion from the former Middle East Bank in 2004, Emirates Islamic has grown into a key contributor to the Emirates NBD Group. It now accounts for roughly 15 per cent of group profit and holds 15.3 per cent of total Islamic banking assets in the UAE.

Digitisation is driving customer growth

Wajid said digitisation remains central to the strategy and a key lever for market-share gains. The bank is investing in artificial intelligence and straight-through processing, and is pushing faster onboarding across both retail and SME customers.

Opening an SME account once took up to 11 days. “Today we can do it within three to five days, and a majority of our customers are onboarded on the same day,” he said.

In retail, the EI Plus app has become a major driver of acquisition. Wajid said rapid onboarding, flexible digital journeys and strong customer service are helping the bank win customers from competitors.

He also highlighted the bank’s exclusive partnership with Mohammed bin Rashid Housing Establishment, which supports UAE nationals in home ownership.

Managing the impact of rate cuts

With around 70 per cent of deposits in low-cost current and savings accounts, Emirates Islamic is prepared for any profit pressure from the global rate-cutting cycle. Wajid said the bank had already anticipated this trend last year and accelerated financing growth to compensate. “To counter the impact, we pushed financing growth, and we have done better than last year,” he said.

The bank maintains an 18.8 per cent capital adequacy ratio and a loan-loss coverage of 153 per cent, which Wajid described as “well ahead of requirements”. This cushion gives the bank room to grow, including potential acquisitions in markets with Islamic banking frameworks, though he stressed there are no deals currently on the table.

Talent remains a core priority. Emirates Islamic is hiring to support expansion across corporate, retail, private banking and wealth management. “If I have to beat the competition, I have to acquire talent,” Wajid said.

What's coming in 2026?

Looking ahead to 2026, Wajid said the priorities remain customer service, digitisation, AI integration and strong financing growth. “This is not something for 2026 only. It will continue beyond 2026 because we believe that is the name of the game.”

He said the bank is also working on emerging areas such as tokenisation and stablecoin applications within the Emirates NBD Group, though details remain confidential until launch.