PRESS RELEASE: Dubai, 26 October 2023
Emirates Islamic Records Remarkable Growth in 2023
Emirates Islamic, a leading Islamic bank in the UAE, has reported its highest-ever 9-month profit, achieving a remarkable surge of 56% to AED 1.65 billion during the first nine months of 2023. This exceptional performance was driven by increased funded and non-funded income, reflecting improved business sentiment in the region.
Key Highlights from the First Nine Months of 2023:
- Strong Operating Performance: Total income surged by 62% year-over-year (y-o-y) due to higher funded and non-funded income, while operating profit improved by 83% y-o-y.
- Robust Financial Position: Net profit sharply increased to AED 1.647 billion, with a net profit margin of 4.7%. The bank’s strong capital and liquidity, along with a healthy deposit mix, enabled it to maintain a solid asset base of AED 86 billion.
- Customer Financing and Deposits: Customer financing reached AED 52 billion, a 7% increase from 2022, while customer deposits grew to AED 61 billion, with CASA balances constituting 75% of deposits.
- Credit Quality and Capital: The non-performing financing ratio stood at 7.4%, with a strong coverage ratio of 123%. The Tier 1 ratio and Capital adequacy ratio reflected the bank’s robust capital position.
- Commitment to Sustainability: Emirates Islamic reaffirmed its commitment to sustainability by joining Emirates NBD Group’s support of COP28 as Principal Banking Partner. The bank also launched the Group’s inaugural Sustainable Finance Framework to finance projects promoting a low carbon and climate-resilient economy.
Farid Al Mulla, CEO of Emirates Islamic, highlighted the bank’s continued growth and innovation, with profit increasing by 23% y-o-y in Q3 2023 and total income jumping by 46%. He emphasized the bank’s focus on providing convenient and secure banking solutions, including the launch of EI 2.0, an enhanced Mobile Banking App, and a Customer Care Portal on the website.
Emirates Islamic also saw growth across all operating segments, including Consumer, Business, and Corporate banking. The bank’s Sukuk book size reached a record AED 10 billion, reflecting its commitment to Islamic finance.
Al Mulla underscored Emirates Islamic’s dedication to nurturing local talent, achieving a strong Emiratisation ratio of 36%, and increasing women in leadership positions to 23% as part of its commitment to Diversity and Inclusion.
Emirates Islamic’s exceptional performance and commitment to innovation and sustainability have been recognized with awards for the ‘Most Innovative Islamic Bank’ and ‘Best Islamic SME Bank’ at the International Finance Awards 2023, reinforcing its position as a leader in the UAE’s banking sector.
