Dubai
Emirates Islamic (EI), an Islamic bank belonging to Emirates NBD Group, reported a net profit of Dh485 million, up 25 per cent year on year.
The first half net profits represent an increase of 54 per cent compared to the second half of 2017. The net profit for the second quarter of 2018 is Dh277 million, a year-on-year increase of 67 per cent.
Total income (net of customers’ share of profit) of Dh1.2 billion, increased by 3 per cent year on year. Net financing and investing receivables at Dh34.9 billion surged 3 per cent from end 2017.
“At Emirates Islamic, we continue to deliver profitable growth with net profits in the first half improving 25 per cent year-on-year. This increase in profitability is driven by higher income and lower impairments due to an improvement in the credit quality of the bank’s financing book,” said Mohammad Amin, Chief Executive Officer of Emirates Islamic.
During the first six months of this year the bank’s customer deposits grew 2 per cent to Dh42.7 billion from end 2017. Current and savings accounts balances were up 5 per cent from end 2017.
An enhanced collections drive coupled with an improved cost of risk in the first half of the year resulted in 47 per cent lower impairments compared to the same period last year.
EI’s headline financing to deposit ratio stood at 81.7 per cent. Capital ratios, as calculated under the Basel III framework for the first half of 2018, were strong with a common equity tier 1 ratio at 15.7 per cent and the total capital ratio at 16.8 per cent.
