(MENAFN - Khaleej Times) Emirates Islamic, a leading Islamic financial institution in the UAE, announced on Tuesday a six-fold increase - the highest ever recorded net profit of Dh702 million - and the highest ever recorded total assets of Dh61.9 billion in 2017.
Net profit for 2017 increased 565 per cent as total income declined by four per cent to Dh 2.4 billion, the bank said.
The bank's total assets increased by four per cent to Dh61.9 billion, while customer deposits rose two per cent to Dh41.8 billion. Current and Saving accounts balances increased by one per cent from end 2016 and represent 68 per cent of total deposits.
Financing and investing receivables at Dh 33.8 billion, declined by seven per cent while headline financing to deposits ratio at 81 per cent, remains healthy and within the management's target range, the bank said in a statement.
Capital ratios, as calculated under the Basel III framework, were strong with the Common Equity Tier 1 ratio at 16.2 per cent and the Total Capital ratio at 17.4 per cent, Hesham Abdulla Al Qassim, Chairman of Emirates Islamic, Vice Chairman and Managing Director of Emirates NBD, said.
"Emirates Islamic has delivered strong results and the impressive performance in 2017 is demonstrated with a six-fold increase in net profit to Dh702 million. The bank significantly increased its returns to shareholders with Return on Equity of 10 per cent in 2017, up from two per cent in 2016. Over the years, Emirates Islamic has asserted its position as a leading financial institution in the UAE, with a vital contribution to the development of the overall Islamic finance sector," said Al Qassim.
He said Islamic banking in general and Emirates Islamic in particular would be playing a significant role, with the UAE economy set to grow steadily in 2018 on the back of a more stable oil price, a pick-up in global trade and infrastructure investments around Expo 2020. "I am confident that Emirates Islamic will continue to be a key driving force in fulfilling the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, in making Dubai the global capital of Islamic economy."
Jamal bin Ghalaita, Chief Executive Officer of Emirates Islamic, said in 2017, the bank focused on consistent control of operating costs, which improved by eight per cent over last year. "With a lower cost of risk and an enhanced collection drive, net impairment allowances have improved by 48 per cent year-on-year."
Ghalaita said digital transformation and innovative banking solutions were the key drivers of increasing customer footprint, while providing customers with a superior service experience. "We are the first and only Islamic bank in the UAE to launch both Apple Pay and Samsung Pay, providing convenient payment solutions to our customers. Other digital initiatives include the launch of our revamped Mobile Banking app and QuickRemit foreign exchange transfers."
In 2017, the bank enhanced its cards offering, launching the Emarati Credit Card for UAE Nationals. "Looking ahead to 2018, we are well positioned to benefit from market opportunities as a result of our investments in the latest technology," said Ghalaita.
Issac John Associate Business Editor of Khaleej Times, is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE's mainstream journalism for 35 years, including 23 years with Khaleej Times. A post-graduate in English and graduate in economics, he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends, he is respected for his astute understanding of the local business scene.