UAE’s Emirates Islamic Bank posts 37% rise in Q1 net profit

UAE-based lender Emirates Islamic Bank has posted a Q1 2021 net profit of Dhs212m, up 37 per cent year-on-year from the corresponding period last year, due to lower costs and lower impairment allowances.

Meanwhile, its operating profit of Dhs319m, dipped 12 per cent y-o-y and improved 39 per cent on a quarterly basis. Total income soared 12 per cent on a quarterly basis, on the back of recovery in non-funded income.

Expenses declined 9 per cent year-on-year and 11 per cent compared to the last quarter. The number of digital transactions across the bank’s online banking platforms increased 22 per cent, while the lender transformed nine of its branches to facilitate people of determination.

.@EmiratesIslamic reports 2021 Q1 profit of AED 212 million, up 37% year-on-year and 224% quarter-on-quarter, while maintaining a strong balance sheet.https://t.co/rxhpJlaZTr pic.twitter.com/R58vsiIRFl

— Dubai Media Office (@DXBMediaOffice) April 20, 2021

The lender’s total assets and customer financing both grew 1 per cent to Dhs71.2bn and Dhs41.2bn, respectively.  However, customer deposits equalling Dhs46.6bn, declined 1 per cent from 2020, Dubai Media Office reported.

Hesham Abdulla Al Qassim, the bank’s chairman said: “We are pleased to report a strong performance by Emirates Islamic in Q1 2021, as the bank focused on enhancing its operations and the UAE economy continued to respond favourably to the positive measures and vaccination programme undertaken by the government in handling the Covid-19 pandemic. As the official Islamic Banking partner to Expo 2020 Dubai, we are optimistic of the growth opportunities this milestone event will brings to individuals and business in the UAE.”

“Emirates Islamic has delivered profitable growth in Q1 2021 with net profit improving 37 per cent year on year, driven by proactive cost management and lower provisions,” said Salah Mohammed Amin, its chief executive officer.

The bank has expanded its Business Banking centre network to support small and medium enterprises (SMEs) by launching two new facilities in Dubai.