According to a statement released by Emirates Islamic on Thursday, the bank’s 2022 net profit increased by 51% to a record AED 1.24B “on greater funded income and non-funded income with a considerable reduction in the cost of risk indicating the solid economic recovery.” According to a statement from the bank, total income increased by 33% year over year, driven by greater funded and non-funded income as a result of stronger financing and deposit mix and higher profit rates feeding through to net profit margin.
Customer financing climbed by 14% to AED 48.4B, while the bank’s total assets expanded by 15% to AED 75B. Deposits from customers increased 19% to AED 56.3B, according to Khaleej Times, with current and savings account balances accounting for 74% of all deposits. With a robust coverage ratio of 128%, the non-performing financing ratio increased to 7%.
The bank stated that its headline financing to deposit ratio of 86% demonstrated continuing solid liquidity in the UAE, while its Tier 1 ratio of 17.9% and capital adequacy ratio of 19% reflected the bank’s excellent capital position. According to the statement, the bank’s operating costs grew 29% year over year as a result of its investments in future growth. Hesham Abdulla Al Qassim, chairman of Emirates Islamic, and vice-chairman and managing director of Emirates NBD, said Emirates Islamic has one of the highest Emiratisation rates in the UAE banking sector, at 38% of total employees and 34% of critical positions.
Salah Mohammed Amin, chief executive officer of Emirates Islamic, said Emirates Islamic continued to strengthen its digital offering, resulting in a 21% increase in online and mobile banking transactions. “We are pleased to be recognized in 2022 for our financial performance.” According to him, Emirates Islamic has further solidified its position as the top Islamic financial institution in the UAE, recording its largest growth in financing deposits and receivables since 2016. This development reflects the present upbeat business climate.
