Emirates Islamic Announces Record-Breaking Net Profit Of AED2.12 Billion In 2023

At the forty-eighth General Assembly Meeting, Emirates Islamic, a leading Islamic financial institution in the United Arab Emirates (UAE), unveiled its financial outcomes for the year 2023. The Chairman, Hesham Abdulla Al Qassim, proudly announced a record net profit of AED2.12 billion, marking a substantial 71% increase from the previous year. This achievement underscores the bank's robust response to global economic challenges and its prominent role in the Islamic banking sector regionally.

The financial performance of Emirates Islamic in 2023 was noteworthy, with a 50% surge in total income attributed to financing growth, a cost-effective funding base, and higher transaction volumes. Despite a 15% rise in operating expenses due to investments aimed at future expansion and a 117% increase in impairment allowances linked to financing growth, the bank saw an 82% improvement in operating profit. The net profit margin reached an impressive 4.69%. Furthermore, the bank's total assets grew by 18% to AED88 billion, customer financing by 11% to AED53.7 billion, and customer deposits by 9% to AED61.3 billion.

Emirates Islamic boasts a solid capital and liquidity stance, with a Tier 1 capital ratio of 18.9% and a liquidity ratio that indicates robust liquidity within the UAE. The non-performing financing ratio saw an improvement to 6.3%, accompanied by a strong coverage ratio of 132%. Al Qassim emphasized the bank's dedication to fostering the growth of Islamic banking in the UAE and supporting Dubai's ambition to become the global hub of the Islamic economy.

The General Assembly Meeting saw the passage of several critical resolutions. These included endorsing the bank's activities and financial statements for 2023, appointing an external auditor for 2024, and approving Shari'ah-compliant non-convertible securities issuance by the bank. Additionally, authorizations were granted for updating the existing Sukuk issuance program and initiating new Shari'ah-compliant funding programs.

Emirates Islamic's achievements in 2023 reflect its strong foothold in the UAE's Islamic banking sector. The bank is poised to continue its contribution towards advancing Islamic finance in 2024 and supporting Dubai's vision as the global capital of the Islamic economy.

With inputs from WAM