Emirates Islamic Bank announces 101 per cent increase in first quarter net profit

Emirates Islamic Bank, one of the leading Islamic financial institutions in the region, announced today a 101 per cent increase in net profit for the first quarter of 2013. Net profit for the period reached AED 33.2 million, compared to AED 16.5 million for the same period in 2012.

Total income for the three months ended March 31, 2013, rose to AED 443 million, up 42 per cent compared the first quarter of 2012. The bank reported an operating profit before impairment of AED 195 million for the first quarter of 2013, up by 41 per cent from the same period of 2012.

EIB’s customer deposits stood at AED 26.3 billion at the end of the first quarter of 2013, while customer financing increased by 5 per cent compared to the preceding quarter to reach AED 20.7 billion.

In the first quarter of 2013, EIB maintained a strong financing-to-deposit ratio of 93 per cent, and a healthy capital adequacy ratio of 16.3 per cent. The bank’s nonperforming ratio as of March 31, 2013, improved to 19.2 per cent, from 20.4 per cent on December 31, 2012. Likewise, at the end of the first quarter of 2013 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: “The transformation journey launched by Emirates Islamic Bank in late 2011 continues to deliver strong growth quarter over quarter, through strengthened retail and commercial franchises, supported by an expanded product offering and physical network.”

Emirates Islamic Bank now possesses 171 ATMs and the 6th largest branch network in the UAE and continues to invest in expanding its network further across the country.

“Q1 2013 has also 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”, Bin Ghalaita added.

In recognition of EIB’s success, the bank was recognised as “Best Islamic Bank in UAE 2013” by two renowned international magazines, Capital Finance International (CFI) and World Finance.