Saturday, 24 February 2024

Emirates Islamic nets $163.6 million profit in Q1

5 min read

Emirates Islamic’s net profit grew by 76% year-on-year to a record AED 601 million ($163.6 million) in the first quarter of 2023, driven by a 74% growth in total income.

Hesham Abdulla Al Qassim, chairman, Emirates Islamic said, "As the UAE steadily delivers higher economic growth, customer confidence is at a high. This was reflected in increased appetite for retail products, growth in card spending and higher customer deposits".

The bank announced the successful pricing of its inaugural AED 1 billion ($272.3 million) dirham-denominated sukuk, the first such sukuk by a UAE bank. The Sukuk sale will expand financing options for UAE corporations with Shariah-compliant needs while enhancing the development of the Ministry of Finance’s dirham yield curve. The three-year issue attracted a strong order book and was 2.5 times oversubscribed, which allowed the bank to tighten the profit rate to 5.05%, at a spread of 67 basis points over UAE Government Treasuries.

"At Emirates Islamic, we believe in Emirati talent and have exceeded the Emiratisation target set by the Central Bank of the UAE. We are proud to have one of the highest Emiratisation rates in the UAE banking sector, at 38% of total employees at the bank," he added.

Emirates Islamic supported those in need by contributing AED 108 million ($29.4 million) in 2022 through the Emirates Islamic Charity Fund. The bank will continue to support a number of charitable institutions and deserving causes in 2023, especially during the holy month of Ramadan.

Salah Mohammed Amin, chief executive officer, Emirates Islamic said, "Emirates Islamic’s balance sheet remains strong with total assets growing by 4% in the first quarter of 2023 to reach AED 77.9 billion ($21.2 billion), demonstrating the strength of our operating capabilities and prudent risk management".

Our strong results are a reflection of our focus on providing innovative financial solutions to our customers while enhancing the overall customer experience.

As Emirates Islamic continues to drive innovation in the Islamic banking sector, the bank launched a global fintech accelerator campaign in collaboration with the world’s leading innovation platform, Plug and Play Abu Dhabi. The campaign is a call to action for leading Islamic fintechs and financial startups with propositions that can enhance customer journeys across small and medium-sized enterprise (SME) financing, trade finance and financial well-being.

Further reinforcing its commitment to SMEs, the bank launched its “Trade More, Earn More” campaign to incentivise small and medium-sized businesses to use trade solutions suited for optimal import and export business transactions.

Re-disseminated by The Asian Banker

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