Emirates Islamic achieves record profit of AED 811 million in first quarter of 2024 – Business – Economy and Finance

Emirates Islamic, one of the leading banks in the UAE, has reported a record-breaking profit of AED 811 million in the first quarter of 2024, marking a significant 35% increase compared to the same period last year. This exceptional financial performance can be attributed to a strong 19% growth in total income, driven by higher funded and non-funded income streams.

The bank’s operating profit also saw a remarkable surge of 28% year-on-year, highlighting its operational efficiency and strategic financial management. This positive trend reflects the overall economic outlook in the region, indicating a buoyant and thriving economy.

Key highlights from the first quarter of 2024 include a substantial increase in total income, with both funded and non-funded income contributing to this growth. Despite a 1% rise in operating expenses, the bank maintained a cost-to-income ratio of 28.4%, demonstrating its commitment to investing in future growth while managing costs effectively. Additionally, impairment allowances decreased by 56% year-on-year, further strengthening the bank’s financial position.

Emirates Islamic’s net profit reached a record AED 811 million, with a net profit margin of 4.7%. This solid performance is a testament to the bank’s strong capital and liquidity position, which has enabled it to continue supporting customers and driving growth in key areas.

Total assets for the bank stood at AED 95.0 billion, representing an 8% increase from the end of 2023. Customer financing also saw a significant uptick, reaching AED 57.0 billion, a 6% increase from the previous year. Customer deposits grew to AED 66.7 billion, with Current Account and Savings Account balances accounting for 77% of total deposits.

In terms of credit quality, the non-performing financing ratio improved to 5.8%, with a robust coverage ratio of 133%. The bank’s capital position remains strong, with a Tier 1 ratio of 18.8% and a capital adequacy ratio of 19.9%. The Headline Financing to Deposit ratio, at 85.5%, reflects healthy liquidity in the UAE market.

Overall, Emirates Islamic’s stellar performance in the first quarter of 2024 underscores its resilience, strategic focus, and commitment to delivering value to its customers and stakeholders. With a solid financial foundation and a positive economic outlook, the bank is well-positioned to navigate challenges and seize opportunities in the dynamic banking landscape of the UAE.