EIB posts 83% increase in 9-month profit

24/10/2014 08:36 AST

Emirates Islamic Bank (EIB), one of the leading Islamic financial institutions in the region, announced on Thursday an 83 per cent increase in net profit for the YTD third quarter of 2014.

Net profit for the nine month period reached Dhs256 million, compared to Dhs140 million for the same period in 2013. The bank reported an operating profit before impairment and customer share of profit of Dhs1.1 billion, up by 14 per cent from last year.

Total income for the three months ended Sept.30, 2014, rose to Dhs571 million, up 20 percent compared to the third quarter of 2013. This is the 11th consecutive quarter of continued growth for the bank since the launch of its transformation journey towards the end of 2011.

Empowered by the strong growth, Emirates Islamic has continued strengthening the health of the bank’s balance sheet. The bank maintained a strong financing-to-deposit ratio of 98 per cent. The bank’s nonperforming ratio as of Sept.30, 2014, improved to 14.1 per cent, from 16.5 per cent on Dec.31, 2013. Likewise, the bank has further improved its cash coverage ratio to 85 per cent, compared to 74 per cent at the end of 2013.

Jamal Bin Ghalaita, Chief Executive Officer of Emirates Islamic, said: “The transformation journey launched by Emirates Islamic in late 2011 continues to deliver strong growth quarter over quarter, through strengthened retail and commercial businesses, supported by an expanded product offering and distribution. The most important aspect of our growth is that it is coming from our core business. Our financing book has grown by 17 percent in the period from December 31, 2013 to Sept.30, 2014, to cross the Dhs25bn mark, which is among the fastest core business growth in the market today.”

Emirates Islamic continued to expand its distribution channels through the period, in addition to the expansion of the customer offering. Emirates Islamic now stands as one of the top banks in Dubai and the UAE by distribution reach and accessibility to its customers.

“We realise that the success we have seen over the past few years is only the beginning. We continue to work hard to reach our target of market leadership and to meet every expectation of our customers”, added Bin Ghalaita.

The Gulf Today