Emirates Islamic soars to new heights with record-breaking net profit in 2022

The robust economic recovery in 2022 led to increased funded income and non-funded income for Emirates Islamic, as well as a considerable decrease in the cost of risk. This led to a record AED 1.24 billion in net profit.

Detailed Highlights

• Strong operating performance in FY 2022 thanks to increased funded income and non-funded income and a decrease in the cost of risk.
• Improved finance and deposit mix, along with higher profit rates flowing through to a higher net profit margin, contributed to a 33% year-over-year increase in total revenue.
• Due to the Bank’s strategic investments in its long-term expansion, operating costs rose by 29% year over year.
• Financing expansion at a reduced cost of risk (76 basis points) led to a 5% year-over-year rise in Impairment Allowances.
• Net profit hit a record AED 1.24 billion, up 51% year over year, while operating profit grew by 36% year over year.
• Increase in net profit margin to 3.39 percent
• The Bank is able to maintain its commitment to its clients because to its high level of capitalization and liquidity and its diversified deposit base.
• As of the year 2022, total assets were up 15% to a new high of AED 75 billion.
• AED 48.4 billion, or 14% more, was financed by customers in 2022.
• There was a 19% rise in customer deposits in 2022, totaling AED 56.3 billion; 74% of these deposits were held in checking and savings accounts.
• The ratio of non-performing financing has decreased to 7.0%, while the coverage ratio is at a robust 128%.
• Tier 1 Capital Ratio between 17.9% and 19% Financial stability is shown in the bank’s high capital adequacy ratio.
• The Title The UAE’s financing to deposit ratio remains high, at 86%.

To quote Hesham Abdulla Al Qassim, Chairman of Emirates Islamic and Vice Chairman and Managing Director of Emirates NBD:

• In 2022, Emirates Islamic made AED 1.24 billion in net profit, a record high and a 51% rise from the previous year.
• When compared to 2021, the bank’s Operating Profit increased by 36%, while the bank’s cost of risk decreased.
• The Bank acted as a receiving bank for initial public offerings (IPOs) on the Dubai Financial Market for companies including DEWA, Salik, TECOM, Taaleem, and EMPOWER, allowing foreign investors easy access to the UAE capital markets.
• Fitch Ratings has recognized Emirates Islamic Bank’s good performance by maintaining the bank’s ‘A+’ Long-Term Rating with a Stable Outlook, upgrading the bank’s ‘F1’ Short-Term Rating, and increasing the bank’s ‘Viability Rating.
• Among UAE banks, Emirates Islamic has one of the highest Emiratization rates, with 38% of total workers and 34% of crucial positions held by locals. The National Achievers Strategic Academy and Future Proof Banker are just two of the many programme that Emirates Islamic has spearheaded to foster the growth of UAE national talent.
• Motivated by fundamental Shariah principles, Emirates Islamic is unwavering in its dedication to its charity endeavors, donating approximately AED 108 million from the Emirates Islamic Charity Fund to various causes in 2022. Assistance in the areas of food, shelter, health, education, and social welfare are the primary focuses of the Emirates Islamic Charity Fund.
• We remain deeply committed to His Highness Sheikh Mohammed Bin Rashid Al Maktoum’s, Vice-President and Prime Minister of the United Arab Emirates and Ruler of Dubai’s, vision of making Dubai the global capital of the Islamic economy and to playing a leading role in the development of the Islamic banking sector in the United Arab Emirates.

The CEO of Emirates Islamic, Salah Mohammed Amin:

• With its largest increase in financing receivables and deposits since 2016, Emirates Islamic has further solidified its position as a leading Islamic financial institution in the UAE, which is in line with the current upbeat business sentiment.
• Financing from customers increased by 14% in 2022, with deposits increasing by 19%; both checking and savings accounts expanded by 13%.
• In 2022, we introduced the Emirati Family Savings Account, the Emirati Business Account, and the Super Savings Etihad Guest Account to our lineup of available products. We also created the Businesswomen Account, which is loaded with perks for female business owners. With the introduction of cardless cash withdrawals via businessONLINE, we have further improved our business-friendly products. Together with Tradeling, the leading eMarketplace for B2B transactions in the MENA area, we formed a strategic partnership in 2022.
• A 21% rise in online and mobile banking transactions can be attributed to Emirates Islamic’s efforts to improve its digital offering.
• It’s an honor to be singled out for our monetary success, ground-breaking new offerings, and outstanding service to customers in the year 2022. At the World Finance Islamic Finance Awards, the Bank’s service and products were recognized, as Emirates Islamic was voted “Best Islamic Bank in UAE,” “Best Islamic Bank in Customer Experience in UAE,” and “Best Credit Card in UAE” for our Etihad Guest Credit Card. At the Middle East and Africa Finance Awards, the Bank was voted the “Best Islamic Bank for SMEs” for its cutting-edge offering to small and medium businesses and its standing as a go-to financial institution for business owners in need of Shariah-compliant services.
• The Banker’s 2022 brand assessment placed the worth of Emirates Islamic at $325 million, making it the most valuable Islamic banking brand in the United Arab Emirates.

Source:

https://focus.hidubai.com/emirates-islamic-net-profit/