Emirates Islamic Bank at Khalid Bin Waleed street in Dubai. Image Credit: Ahmed Ramzan/Gulf News Archives

Dubai: Emirates Islamic reported a net profit of Dh657 million for the first nine months of 2018, up 32 per cent year-on-year.

“The increase in profitability is on the back of growth in financing receivables and investments securities, coupled with an increase in core fee income and a lower cost of risk,” said Salah Mohammad Amin, chief executive officer of Emirates Islamic.

“The bank’s balance sheet is strongly positioned with robust liquidity, solid capital ratios and a further improvement in credit quality, as we continue to expand our presence in the Islamic banking sector.”

Total income (net of customers’ share of profit and distribution to sukuk holders) increased by 2 per cent year-on-year to Dh1.8 billion while financing and investing receivables grew 7 per cent to Dh36.3 billion from the end of 2017.

The bank posted a modest increase of 1 per cent in customer deposits to Dh42.4 billion from the 2017 year-end period.

The headline financing-to-deposits ratio stood at 86 per cent at the close of the third quarter and remains comfortably within the management’s target range.

The bank reported a common Equity Tier-1 ratio of 15.6 per cent and a capital adequacy ratio of 16.7 per cent.

The impaired financing ratio improved to 8.3 per cent whilst the coverage ratio strengthened to 119.5 per cent