Emirates Islamic Bank PJSC Reports Record AED 1.7 Billion Profit in H1 2024, Surpasses AED 100 Billion in Assets
Emirates Islamic Bank PJSC has announced a record-breaking profit of AED 1.7 billion for the first half of 2024, marking a 37% year-on-year increase. The bank's total assets have also surpassed the AED 100 billion mark for the first time.
Summary
Emirates Islamic Bank PJSC has achieved its highest-ever half-year profit of AED 1.7 billion in the first half of 2024, driven by significant increases in both funded and non-funded income. The bank's total assets have also surpassed AED 100 billion, reflecting its strong capital and liquidity base. Key performance metrics show substantial improvements, making it a compelling choice for investors.
Emirates Islamic Bank PJSC has made headlines with its stellar financial performance in the first half of 2024, reporting a record profit of AED 1.7 billion, a 37% increase compared to the same period last year. This impressive achievement is attributed to a 15% rise in total income, which reached AED 2.7 billion, and a remarkable 40% surge in operating profits.
The bank's robust capital and liquidity base has enabled it to surpass the AED 100 billion mark in total assets, now standing at AED 102 billion. This milestone comes as the bank celebrates its 20th anniversary, further solidifying its reputation as a key player in the U.A.E's banking sector. The bank has been recognized with several prestigious awards, including 'Best Overall Islamic Bank' and 'Most Innovative Islamic Bank' at the Islamic Finance News Awards 2024, and 'Most Innovative Islamic Bank' at the Euromoney Islamic Finance Awards 2024.
Key highlights from the first half of 2024 include:
- Total income up 15% year-on-year, driven by higher funded and non-funded income
- Expenses decreased by 20% year-on-year, with a cost-to-income ratio of 28.8%
- Impairment allowances decreased by 46% year-on-year, reflecting a buoyant and healthy U.A.E. economy
- Operating profit improved by 40% year-on-year
- Net profit increased sharply to AED 1.664 billion
- Net profit margin at 4.56%
The bank's strong capital and liquidity position has empowered it to provide improved products to customers. Total assets increased by 16% to AED 102 billion, customer financing rose by 15% to AED 62 billion, and customer deposits grew by 14% to AED 70 billion. The bank maintains a healthy deposit mix, with current and saving account balances comprising 73% of total deposits.
Credit quality has also seen significant improvements, with the non-performing financing ratio improving to 5.2% and a strong coverage ratio of 135%. The bank's Common Equity Tier 1 (CET-1) ratio stands at 18.4%, and its capital adequacy ratio at 19.6%, reflecting a rock-solid capital base.
Given these outstanding financial metrics and the bank's continued recognition as a leader in the Islamic banking sector, Emirates Islamic Bank PJSC presents a compelling investment opportunity. The strong growth trajectory, combined with prudent financial management and a favorable economic environment in the U.A.E., makes it a promising choice for investors looking to capitalize on the bank's ongoing success.
In conclusion, the impressive financial performance and strategic positioning of Emirates Islamic Bank PJSC suggest that it is well-placed for future growth. Investors should consider adding this stock to their portfolios to benefit from its strong performance and potential for further gains.
Source
Summary
Emirates Islamic reported a record profit of AED 1.7 billion for the first half of 2024, marking a 37% increase from the previous year. The bank's total assets surpassed AED 100 billion, reflecting a 16% growth. Total income rose by 15% to AED 2.7 billion, while operating profits increased by 40%. Expenses decreased by 20%, and impairment allowances dropped by 46%. The bank's net profit margin stood at 4.56%, and the cost-to-income ratio was 28.8%. Emirates Islamic's capital and liquidity remained strong, with a Common Equity Tier 1 ratio of 18.4% and a capital adequacy ratio of 19.6%. The bank received several awards, including 'Best Overall Islamic Bank' and 'Most Innovative Islamic Bank' at the Islamic Finance News Awards 2024.
