An Emirates Islamic branch in Dubai
Emirates Islamic delivered its highest ever half-year net profit, with an exceptional jump of 73% to Dh1.2 billion during the first-half of 2023. Image Credit: Gulf News Archive

Dubai: Emirates Islamic’s net profit jumped to a record Dh1.2 billion for H1-2023, a 73 per cent increase compared to the year-ago period, the lender said on Thursday.

Total income for the period stood at Dh2.34 billion, up 71 per cent year-on-year driven by higher funded and non-funded income, leading to operating profit growing strongly by 77 per cent over the comparable period in 2022

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“Demonstrating Emirates Islamic’s commitment to deepening the liquidity of the local currency sukuk market, Emirates Islamic issued the first dirham sukuk from a UAE bank, with a hugely successful Dh1 billion dirham-denominated sukuk,” said Hesham Abdulla Al Qassim, Chairman, Emirates Islamic and Vice Chairman and Managing Director of Emirates NBD. “The sukuk issue sets an important precedent, expanding financing options for UAE corporations with Shariah-compliant needs while enhancing the development of the medium-term dirham yield curve.”

Total assets during the period increased by 6 per cent to Dh79 billion, the bank said. Customer financing was up 5 per cent to Dh51 billion, while customer deposits increased by 3 per cent to Dh58 billion with Current and Saving Account balances at 77 per cent of deposits

“Emirates Islamic’s balance sheet grew by 6 per cent to Dh79 billion during the first half of 2023, maintaining a trend of successful asset growth,” said Salah Mohammed Amin, CEO of Emirates Islamic. “Strong capital and liquidity combined with a healthy deposit mix enable the Bank to support customers in fulfilling their banking requirements.”

The bank boasts a strong financial position with a 7.2 per cent non-performing financing ratio and a 120 per cent coverage ratio. Its capital is robust, with a 19.0 per cent Common Equity Tier 1 ratio and a 20.1 per cent Capital adequacy ratio. The financing to deposit ratio at 88 per cent remains within the management's target range.