Emirates Islamic reports record profit of AED 811 million for Q1 2024

Emirates Islamic profit surged to a record AED 811 million in the first quarter of 2024, up 35% year-on-year. This remarkable financial success was underpinned by a robust 19% growth in total income, propelled by higher funded and non-funded income streams, which serves as a testament to the Bank's strengthened business sentiment and strategic financial management. Furthermore, the noteworthy 28% increase in operating profit not only underscores the Bank's operational efficiency but also mirrors the positive economic outlook within the buoyant regional economy.

Key Highlights – Q1 2024

Strong operating performance on higher funded income and non-funded income

• Total income up 19% y-o-y driven by higher funded income and non funded income
• Operating expenses increased by 1% y-o-y as the Bank invests for future growth. Cost to income ratio at 28.4%
• Impairment Allowances decreased by 56% y-o-y
• Operating profit showed an impressive growth of 28% y-o-y
• Net profit increased to a record AED 811 million, up by 35% y-o-y
• Net profit margin at 4.7%

Strong capital and liquidity combined with a healthy deposit mix enabled the Bank to continue supporting customers

• Total assets at AED 95.0 billion, increased 8% from end 2023
• Customer financing at AED 57.0 billion, increased 6% from end 2023
• Customer deposits at AED 66.7 billion, increased 9% from end 2023 with Current Account and Savings Account balances at 77% of total deposits
• Credit Quality: Non-performing financing ratio improved to 5.8% with strong coverage ratio at 133%
• Capital: Tier 1 ratio of 18.8% and 19.9% Capital adequacy ratio reflects Bank’s strong capital position
• Headline Financing to Deposit ratio at 85.5%, reflects continued healthy liquidity in the UAE

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