An Emirates Islamic branch in Dubai
An Emirates Islamic branch in Dubai. Image Credit: Gulf News Archives

Dubai: Emirates Islamic’s net profit for the first six months totalled Dh673 million, an increase of 39 per cent year-on-year. These results were supported by balance-sheet growth, higher funded income, growth in foreign exchange income, tighter control on costs and a lower cost of risk.

Total assets increased 5 per cent to Dh61.1 billion from year-end 2018. Financing and investing receivables were at Dh36.6 billion, up 1 per cent from the end of last year.

“Our performance is a result of core business growth, with both financing and customer deposits higher compared to end 2018,” said Salah Mohammad Amin, CEO at Emirates Islamic. “Foreign exchange income showed an upward trend, with a growing number of customers availing foreign exchange services from the bank. The balance-sheet remains healthy with a further strengthening in capital due to retained earnings, stable credit quality and liquidity,”

Customer accounts were up 5 per cent to Dh43.8 billion from year-end 2018. Current and savings account balances were up 3 per cent during the same period. Impaired financing ratio is at 8.6 per cent with a strong coverage ratio of 115 per cent.

Headline financing-to-deposit ratio at 83 per cent demonstrates a healthy liquidity position, while capital adequacy remained strong with Tier 1 capital ratio at 17.8 per cent and capital adequacy ratio at 18.9 per cent.