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Emirates Islamic, Islamic bank belonging to Emirates NBD Group reported a net profit of Dh804 million for the first nine months of 2021. Image Credit: Atiq ur Rehman/Gulf News

Dubai: Emirates Islamic, Islamic bank belonging to Emirates NBD Group reported a net profit of Dh804 million for the first nine months of 2021, up 358 per cent compared to the same period last year.

For the third quarter of 2021, the bank reported a net profit of 236 million, up 173 per cent year on year.

The bank attributed the strong performance to higher non-funded income and a significant reduction in the cost of risk reflecting improved business sentiment.

“Emirates Islamic’s net profits rebounded in the first nine months of 2021 at Dh804 million, driven by higher non-funded income coupled with lower impairment allowances,” said Salah Mohammed Amin, Chief Executive Officer of Emirates Islamic.

During the period the bank’s total income was up 14 per cent year on year and 43 per cent on Q3 2020.

The bank reported lower impairment allowances reduced 83 per cent year on year with a lower cost of risk at 73 bps.

Operating profit improved 28 per cent year on year for the nine month period and 94 per cent for the third quarter compared to the same period last year.

At the close of the nine-month period in 2021, total assets remained robust at Dh66 billion maintaining a strong asset base. Customer financing grew 4 per cent to Dh42.4 billion from 2020. Customer deposits at Dh48.9 billion, increased 4 per cent from 2020 with CASA [current and savings account] balances at 76 per cent of deposits.

Non-performing financing ratio improved to 8.4 per cent with strong coverage ratio at 108 per cent

Bank continued to maintain strong capital and liquidity combined with a healthy deposit mix. Tier 1 ratio was at 19.2 per cent and capital adequacy ratio at 20.3 per cent at the close of Q3 2021.