Finance & Capital Market

Emirates Islamic posts $84m loss for 9 months

Emirates Islamic (EI), one of the leading Islamic financial institutions in the UAE, has reported a net loss of AED311 million ($84.6 million) for the first nine months of 2020.

The bank’s balance sheet remains healthy with strong coverage, liquidity and capital ratios. Emirates Islamic received strong demand for its benchmark Sukuk issue in September, an EI statement said.

Financial highlights:

•    Total assets at AED70.1 billion, increased by 8% from end 2019.
•    Financing and Investing Receivables at AED41 billion, increased by 9% from end 2019.
•    Customer accounts at AED45.9 billion, increased by 1% from end 2019.
•    Current and Savings accounts balances up 11% from end 2019.
•    Total Income of AED1.6billion, lower by 23% year-on-year.
•    Funded Income margins lower by39bps year-over-year due to lower profit rate environment.
•    Impaired Financing Ratio is at 8.3% with strong coverage ratio of 109.1%.
•    Headline financing to deposit ratio at 89% demonstrates healthy liquidity position.
•    Solid Tier 1 capital ratio of18.0% and Capital adequacy ratio at 19.2%.

Salah Mohammed Amin, Chief Executive Officer of Emirates Islamic said: “Our results for the first nine months of 2020are a result of the challenges faced due to the pandemic and reflect our prudent and cautious approach in the current situation.”

“As the economy reopens following the acute disruption in the second quarter, we are witnessing a significant increase in business activity. We are grateful to the UAE’s wise leadership during these challenging times with the UAE Government having issued clear, prescriptive and measured guidelines to reopen the economy with safety continuing to be the top priority.

“We have stayed true to our core Shari’a principles, offering relief measures to our retail, business and corporate banking customers facing difficulties as a result of the pandemic. We have assisted over 39,600 customers with instalment deferments to the value of AED2.2 billion.

“During this period, we have seen a marked increase in the usage of our digital banking channels, and we will continue to invest in technology to enhance the digital services we provide our customers. The favourable reception to our recent $500 million Sukuk also reflects strong investor confidence in Emirates Islamic’s credit strength, business fundamentals and growth strategy,” added Salah Mohammed Amin. – TradeArabia News Service