Profit rises at Emirates Islamic Bank on reduction in impairments

Emirates Islamic Bank only had to set about half as much money aside to cover bad loans in the first quarter. Satish Kumar / The National

Emirates Islamic Bank showed a huge increase in net profit in the first quarter as money set aside for bad loans fell by almost half.

The Sharia-compliant unit of Dubai-lender Emirates NBD made allowances for impairments of Dh135 million in the first three months of the year, compared to Dh263m a year earlier. Net profit for the period was Dh221m compared to Dh45m a year earlier.

Jamal Bin Ghalaita, the lender’s chief executive, said that the bank had also reduced expenses by 18 per cent. Total income was 1 per cent higher at Dh725m in the first quarter compared to Dh712m a year earlier as a dip in commissions and fees income was offset by higher earnings from investment securities.

Personnel and general and administrative expenses were all lower year on year. Last summer the bank fired 100 people amid a subdued outlook for the second half of the year. Those layoffs had followed the sacking of 200 staff earlier in the year.

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