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Hesham Abdulla Al Qassim

Emirates Islamic profit soars 51% in 2022 to record $340m

DUBAI, January 26, 2023

Emirates Islamic’s net profit has soared 51% to a record AED1.24 billion ($340 million) for 2022 on higher funded income and non-funded income with a significant reduction in cost of risk reflecting the strong economic recovery.
 
Total income up 33% y-o-y driven by higher funded income and non-funded income as a result of improved financing and deposit mix with higher profit rates feeding through to net profit margin
 
Operating expenses increased 29% y-o-y as the bank invests for future growth. Impairment Allowances increased 5% y-o-y due to financing growth with a lower cost of risk at 76 bps and operating profit improved 36% y-o-y.
 
Net profit margin
The bank’s net profit margin improved to 3.39% as strong capital and liquidity combined with a healthy deposit mix enables the bank to continue supporting customers.
 
Its total assets increased by 15% to AED75 billion in 2022. Customer financing increased by 14% to AED48.4 billion while customer deposits increased by 19% to AED56.3 billion in 2022 with Current Account and Savings Account balances at 74% of total deposits.
 
Hesham Abdulla Al Qassim, Chairman, Emirates Islamic and Vice Chairman and Managing Director of Emirates NBD, said: “The bank reported a 36% increase in Operating Profit, coupled with an improvement in cost of risk compared to 2021. It provided seamless access for investors in the UAE capital markets by acting as a receiving bank for IPOs on the Dubai Financial Market, including DEWA, Salik, TECOM, Taaleem and EMPOWER.
 
Viability Rating
“Based on the bank’s strong performance, Fitch Ratings affirmed Emirates Islamic’s ‘A+’ Long-Term Rating with a Stable Outlook, Short-Term Rating of ‘F1’ and upgraded the bank’s Viability Rating. Emirates Islamic has one of the highest Emiratisation rates in the UAE banking sector, at 38% of total employees and 34% of critical positions. Emirates Islamic also drove a number of learning and
development initiatives for UAE National talent including The National Achievers Strategic Academy and Future Proof Banker.
 
“Driven by core Shariah principles, Emirates Islamic remains firmly committed to its charitable initiatives and contributed over AED108 million to a range of charitable initiatives in 2022 through the Emirates Islamic Charity Fund. The Emirates Islamic Charity Fund provides financial aid to those in need, with a focus on food, shelter, health, education and social welfare contributions. As the Islamic bank of choice in the UAE, we continue to play a pivotal role in the advancement of the Islamic banking sector in the UAE.”
 
Salah Mohammed Amin, Chief Executive Officer of Emirates Islamic, said: “Emirates Islamic has further strengthened its position as a leading Islamic financial institution in the UAE, achieving its highest growth in financing receivables and deposits since 2016, reflecting the current optimistic business sentiment. Customer Financing grew by 14% and Customer Deposits grew by 19% during 2022 with Current Accounts and Savings Accounts registering 13% growth during the year.
 
Product offering
“In 2022, we expanded our product offering with the launch of Emarati Family Savings account, Emarati Business Account and Super Savings Etihad Guest Account. We also introduced the ‘Businesswomen Account’ offering a host of benefits and privileges to support women entrepreneurs. We enhanced our business-friendly solutions with the launch of cardless cash withdrawals via businessONLINE. We entered into a strategic collaboration with Tradeling, the largest eMarketplace focused on B2B transactions in the Mena region. Emirates Islamic continued to strengthen its digital offering, resulting in a 21% increase in online and mobile banking transactions.”-- TradeArabia News Service
 



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