UAE Business: Emirates Islamic Q1 net profit shoots up 62pc to $93.11m – Gulf Digital News

UAE Business: Emirates Islamic Q1 net profit shoots up 62pc to $93.11m – Gulf Digital News

Emirates Islamic, a leading Islamic financial institution in the UAE, saw its Q1 net profit shooting up 62% y-o-y to AED342 million ($93.11 million), driven by a 14% growth in income and a 72% improvement in provisions.

For the period ending March 31, 2022, the bank’s total income rose 14% y-o-y driven by higher funded and non- funded income. Its operating expenses increased by 10% y-o-y even as impairment allowances reduced 72% y-o-y.

Operating profit improved 17% y-o-y and net profit margin was pegged at 2.90%.

Operating performance

The bank’s strong operating performance was attributed to higher income coupled with reduction in provisions. Strong capital and liquidity combined with a healthy deposit mix enabled the bank to support customers.

Total assets remained robust at AED70.1 billion, which was an increase of 8% from end 2021. Customer financing was at AED45.2 billion, an increase of 6% from end 2021.

Customer deposits was at AED51.4 billion, an increase of 9% from end 2021 with CASA balances at 80% of total deposits.

Non-performing financing ratio improved to 7.6% with strong coverage ratio at 117.6% and Tier 1 ratio was at 17.7% and capital adequacy ratio was 18.8% reflecting the strong capital position of the bank. Headline financing to deposit ratio