Emirates Islamic profits soar by 271% in 2021

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RIYADH: UAE’s Emirates Islamic reported a jump of 271 percent in net profits to reach 823 million dirhams ($224 million) in 2021, after incurring a loss of 482 million dirhams in 2020, according to a report released by the bank on Wednesday.

The bank’s total income rose in 2021 by 15 percent to reach 2,398 million dirhams, buoyed by strong operating performance. The bank attributed this solid growth to higher non-funded income and major reduction in the cost of risk, driven by strong economic recovery, according to the statement.

Operating profit improved 20 percent year-on-year, expenses rose by 10 percent to reach AED 1.191 billion, non-performing financing ratio improved to 8.2 percent with a significant coverage ratio at 115 percent while total assets remained sturdy at 65 billion dirhams, the report showed.

“Emirates Islamic maintained healthy liquidity and strong capital ratios, enabling the bank to grow customer financing by 4 percent in line with improved economic activity,” said Hesham Abdulla Al-Qassim, chairman of Emirates Islamic and vice chairman and managing director of Emirates NBD.

Customer financing which grew 4 percent, reached 42.6 billion dirhams, while customer deposits increased by 1 percent reaching 47.3 billion dirhams.

The successful issuance of their $500 million 5-year Sukuk was well received by the global investment community, validating strong investor confidence in their financials and growth outlook, and the favorable outlook for the UAE economy, he added.