Emirates Islamic Bank's Profit Surges 46% in 2024
Emirates Islamic Bank reports a record profit before tax, showcasing robust growth and strong financial performance in 2024.
Summary
Emirates Islamic Bank achieved a record profit before tax of AED 3.1 billion in 2024, marking a 46% increase from the previous year due to strong business performance and increased customer financing.
Emirates Islamic Bank PJSC, a prominent player in the United Arab Emirates' banking sector, has reported an impressive financial performance for the fiscal year 2024. The bank announced a record profit before tax of AED 3.1 billion, signifying a remarkable 46% increase compared to the previous year. This substantial growth is a testament to the bank's robust business strategy and its ability to capitalize on the growing demand for Islamic banking services in the region.
The bank's total income rose by 13% year-on-year to AED 5.4 billion, driven by a positive trend in both funded and non-funded income streams. This growth trajectory was further supported by a significant increase in customer financing, which surged by 31% to AED 71 billion, and a 25% rise in customer deposits, reaching AED 77 billion in 2024. These figures underscore the bank's strong market position and its adeptness in managing customer relationships and financial products.
Emirates Islamic Bank's operational efficiency also improved, with expenses decreasing by 7% year-on-year and impairment allowances reducing by 28% due to better credit quality. The operating profit saw a 24% year-on-year increase, further solidifying the bank's financial health.
The bank's capital and liquidity positions remain exceptionally strong, with a Tier 1 ratio of 18% and a capital adequacy ratio of 19.1%. The non-performing financing ratio improved to 4.4%, with a strong coverage ratio of 142%, highlighting the bank's prudent risk management practices.
Given the bank's outstanding performance and solid financial foundation, it presents a compelling case for investors. The bank's ability to navigate the competitive landscape of Islamic banking while maintaining strong growth and profitability suggests a promising future. Therefore, the recommendation for investors would be to buy Emirates Islamic Bank shares, as the bank is well-positioned to continue its upward trajectory in the coming years.
Source
Summary
Emirates Islamic reported a significant achievement in 2024 with a record profit before tax of AED 3.1 billion, marking a 46% increase from the previous year. This growth was attributed to strong performance in both funded and non-funded income. The bank's total income rose by 13% to AED 5.4 billion, with assets increasing by 27% to AED 111 billion. Customer financing grew by 31% to AED 71 billion, and customer deposits rose by 25% to AED 77 billion. The results reflect the strength of the regional economy and the bank's ability to meet the rising demand for Islamic banking. Key highlights include a 7% decrease in expenses, a 28% reduction in impairment allowances, and a 24% improvement in operating profit. The bank maintained a robust capital position with a Tier 1 ratio of 18% and a capital adequacy ratio of 19.1%. The non-performing financing ratio improved to 4.4% with a strong coverage ratio of 142%.
