Emirates Islamic Bank Reports 101% Q1 Profit Jump

Emirates Islamic Bank (EIB), on Sunday, reported a 101 per cent increase in first quarter net profit as compared to the previous year.

The net profit for the period reached Dhs33.2 million, noting a sharp incline from the Dhs16.5 million in the first quarter in 2012. The total income for the three months, that ended March 31, 2013, rose up by 42 per cent to reach Dhs443 million.

The bank reported a 42 per cent increase in operating profit before an impairment of Dhs195 million in the first quarter.

The bank’s other sectors also showed healthy performance. EIB’s customer deposits stood at Dhs26.3 billion while the customer financing increased five per cent to Dhs20.7 billion compared to the previous quarter.

EIB maintained a strong financing-to-deposit ratio of 93 per cent, and a healthy capital adequacy ratio of 16.3 per cent in the first quarter. The bank’s non-performing ratio as of March 31, 2013, improved to 19.2 per cent, from 20.4 per cent on December 31, 2012.

Likewise, by the end of the first quarter, EIB’s coverage ratio also improved to 65.7 per cent, compared to 61 per cent at the end of 2012.

Jamal Bin Ghalaita, chief executive officer of Emirates Islamic Bank, said, “Q1 2013 has seen the bank further enrich its value proposition to target segments of SME and priority customers, with the launch of several new products and services. The Bank has also continued to develop its commercial segment, with substantial growth seen in the portfolio over the quarter.”