Emirates Islamic Bank achieved its highest-ever half-year profits of AED1.7 billion ($463 million) during the first half of 2024. The 37 percent rise in profits was propelled by superior levels of both funded and non-funded income, underlining the bank’s consistent growth trajectory.
Key figures
Emirates Islamic’s total income saw a notable 15 percent increase to AED2.7 billion while operating profits surged by 40 percent. In addition, the bank’s strong capital and liquidity base enabled the balance sheet to surpass AED100 billion. The bank’s expenses declined 20 percent year-on-year while its cost to income ratio reached 28.8 percent.
Its impairment allowances declined by 46 percent annually due to the UAE’s buoyant and healthy economy while its net profit margin reached 4.56 percent.
“Total assets crossed the AED100 billion mark, growing by a substantial 16 percent in the first half of 2024, to AED102 billion,” stated Farid AlMulla, CEO of Emirates Islamic.
Strong capital and liquidity
Strong capital and liquidity, combined with a healthy deposit mix, enabled Emirates Islamic to continue supporting customers. Hence, customer financing increased by 15 percent to AED62 billion, testimony to its successful, customer-centric strategy.
Notably, customer deposits rose 14 percent to AED70 billion with current and saving account balances accounting for 73 percent of deposits. In addition, the bank’s credit quality improved with its non-performing financing ratio reaching 5.2 percent with a strong coverage ratio of 135 percent.
Emirates Islamic solidified its capital base during H1 of 2024 with the Common Equity Tier 1 ratio reaching 18.4 percent and the Capital adequacy ratio reaching 19.6 percent. Headline financing to deposit ratio hit 88 percent, comfortably within the management’s target range.
ESG-linked financial solutions
Emirates Islamic continues to introduce innovative ESG-linked financial solutions. Moreover, it launched its first-ever five-year $750 million sustainability sukuk, reaffirming its commitment to sustainable Islamic financing and marking a significant milestone in the group’s sustainability journey.
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Digital banking innovation
In addition, Emirates Islamic continues to lead in digital banking innovation with the launch of EI + which includes over 150 features including digital account opening.
Earlier this year, Emirates Islamic became the first Islamic bank in the UAE to introduce a Shariah-compliant digital wealth and equity trading platform on its EI + mobile banking App. Digital wealth provides a valuable opportunity as an investment tool in global and local Shariah-compliant stocks and mutual funds.
“We are dedicated to pioneering Shariah-compliant products and services to meet the growing demand for ethical banking solutions. Emirates Islamic became the first Islamic bank in the region to launch Fractional Sukuk, an innovative new product that broadens investment opportunities for customers,” added AlMulla.
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