Emirates Islamic reports 54% jump in third quarter profit

Lender says it has taken advantage of increase in uptake of Islamic banking products

Emirates Islamic reported a 54 per cent rise in its third quarter net profit. Satish Kumar / The National

Emirates Islamic, the Sharia-compliant subsidiary of Dubai’s biggest lender Emirates NBD, reported a 54 per cent rise in its third quarter net profit as operating income and net income from financing and Islamic products climbed.

Net profit for the three months ending September 30, increased to Dh264.2 million, the lender said in a statement to the Dubai Financial Market, where its shares trade. Total operating income for the third quarter rose to Dh715.2m, a 15 per cent rise from a year earlier.

“As a leading Islamic bank, we have taken advantage of the increasing uptake of Islamic banking products in the UAE,” said Salah Mohammed Amin, chief executive of Emirates Islamic in a statement.

The bank also credited its growth to an increase in activity around Dubai's Expo 2020, for which it is the official Islamic banking partner.

"As investments and opportunities arising out of this showcase event continue to increase, we are strategically placed to provide convenient banking solutions to residents and visitors alike," Mr Amin added.

Net income from financing and Islamic products for the three month period was Dh474.4m, up from Dh421m in the same period last year. However, net impairment of the lender’s financial assets in the third quarter climbed to Dh178.2m, up 50 per cent year-on-year.

During the nine-month period, the bank reported its highest net profit of Dh937m, up 43 per cent year-on-year. Operating income in the first nine months of 2019 increased to Dh2.05 billion, from Dh1.84bn in the same period last year.

The lender's total assets stood at Dh62.74bn, an increase of 7 per cent from the end of 2018. Customer deposits are up 9 per cent at Dh45.21bn, while financing receivables rose 3 per cent to Dh37.41bn.