Emirates Islamic Hits Record Profit in Q1 2025
Emirates Islamic Bank reports stellar Q1 2025 results, achieving record profits and demonstrating robust financial health.
Summary
Emirates Islamic Bank's Q1 2025 results show a record net profit of AED 1 billion, a 24% increase year-on-year, with strong capital and liquidity positions.
Emirates Islamic Bank PJSC has once again proven its mettle in the financial industry with its outstanding performance in the first quarter of 2025. The bank reported a record net profit of AED 1 billion, marking a 24% increase from the previous year. This achievement is a testament to the bank's strategic initiatives and its ability to capitalize on the positive business sentiment prevailing in the UAE.
The bank's total income rose by 8% year-on-year to AED 1.45 billion, driven by both funded and non-funded income. This growth in income reflects the bank's robust operational strategies and its commitment to sustaining growth. However, this growth came with a 15% increase in expenses, as the bank continues to invest in initiatives aimed at driving further growth.
One of the key highlights of the bank's Q1 2025 performance is the strong capital and liquidity position. Total assets increased by 11% to AED 123 billion, while customer financing rose by 7% to AED 75 billion. Customer deposits also saw an 8% increase to AED 83 billion, with a healthy deposit mix where current and savings account balances constitute 71% of total deposits.
Emirates Islamic's credit quality has also shown improvement, with the non-performing financing ratio improving to 4% and a strong coverage ratio of 146%. The bank's capital position remains extremely strong, with a Tier 1 ratio of 17.8% and a capital adequacy ratio of 18.9%.
The bank's net profit margin stands at a healthy 3.85%, and its cost-to-income ratio is at 30.2%, reflecting efficient operational management. The headline financing to deposit ratio at 91% indicates continued healthy liquidity in the UAE, positioning the bank well to support its customers.
Given the bank's strong financial performance, robust capital, and liquidity positions, and its strategic investments in growth initiatives, the outlook for Emirates Islamic Bank remains optimistic. Investors may consider this a promising opportunity for investment. Therefore, the recommendation is to buy the instrument, as the bank is poised for continued growth and profitability.
Source
Summary
Emirates Islamic reported a record net profit of AED 1 billion for the first quarter of 2025, marking a 24% increase compared to the same period last year. The bank's total income rose by 8% year-on-year to AED 1.45 billion, driven by increases in both funded and non-funded income. Operating profit improved by 5% year-on-year, while expenses grew by 15% as the bank continued to invest in growth. The bank's capital position remains strong, with a Tier 1 ratio of 17.8% and a capital adequacy ratio of 18.9%. Total assets increased by 11% to AED 123 billion, and customer deposits rose by 8% to AED 83 billion. The non-performing financing ratio improved to 4%, with a strong coverage ratio of 146%. The bank's net profit margin stood at 3.85%.
