Emirates: Emirates Islamic said on Thursday that its 2022 net profit soared 51 per cent to a record Dh1.24 billion “on higher funded income and non-funded income with a significant reduction in the cost of risk reflecting the strong economic recovery.”

Total income was up 33 per cent year-on-year driven by higher funded income and non-funded income as a result of improved financing and deposit mix with higher profit rates feeding through to net profit margin, the bank said in a statement.

The bank’s total assets increased by 15 per cent to Dh75 billion while customer financing rose by 14 per cent to Dh48.4 billion. Customer deposits surged 19 per cent to Dh56.3 billion with current account and savings account balances remaining at 74 per cent of total deposits. Non-performing financing ratio improved to 7.0 per cent with strong coverage ratio at 128 per cent.

The bank said its Tier 1 ratio of 17.9 per cent and 19 per cent capital adequacy ratio reflected the bank’s strong capital position while headline financing to deposit ratio at 86 per cent reflected continued healthy liquidity in the UAE. The bank’s operating expenses increased 29 per cent y-o-y as it invests for future growth, said the statement.

Hesham Abdulla Al Qassim, chairman of Emirates Islamic, and vice-chairman and managing director of Emirates NBD, said Emirates Islamic has one of the highest Emiratisation rates in the UAE banking sector, at 38 per cent of total employees and 34 per cent of critical positions.

Salah Mohammed Amin, chief executive officer of Emirates Islamic, said Emirates Islamic continued to strengthen its digital offering, resulting in a 21 per cent increase in online and mobile banking transactions. “We are pleased to be recognized in 2022 for our financial performance.”

He said Emirates Islamic has further strengthened its position as a leading Islamic financial institution in the UAE, achieving its highest growth in financing receivables and deposits since 2016, reflecting the current optimistic business sentiment.