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