Sharia lender Al Hilal Bank profit rises 42 per cent

Net income increased to Dh441.4 million from Dh310.3m, the bank said on Wednesday. Customer deposits rose 13 per cent to Dh28.2 billion from Dh25bn.

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Al Hilal Bank, an Abu Dhabi-based Sharia-compliant lender, said its profit rose 42 per cent last year to a record amid increased demand for loans in a booming economy.

Net income increased to Dh441.4 million from Dh310.3m, the bank said on Wednesday. Customer deposits rose 13 per cent to Dh28.2 billion from Dh25bn.

The bank’s return on equity increased to 12 per cent last year from 7.8 per cent in 2010, while non-performing loans decreased to 1.2 per cent of its total financing lastyear, the lowest percentage recorded in the UAE, according to the bank.

“Al Hilal Bank has been able to account for a significant share of the local banking market in the first five years of its existence,” said Mohamed Jamil Berro, Al Hilal Bank’s group chief executive. “The bank has continuously witnessed steady growth since its establishment.”

“This is a result of successful implementation of the bank’s strategy which guides us, setting ambitious targets, delivering innovation and value to customers,” he said.

The bank, which has 85,000 customers (of which 4,000 were added in the first two-and-a-half months of this year), has been particularly keen to support the government’s Emiratisation programme. Out of its total workforce, 34 per cent are Emiratis.

Al Hilal Bank was established in 2008 by the state-run Abu Dhabi Investment Council. It is rated A1 by the credit rating agency Moody’s and A+ by Fitch, the highest ratings awarded to an Islamic bank in the UAE.

mkassem@thenational.ae

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