Emirates Islamic posts impressive AED 2.2 billion pre-tax profit in the first half of 2025, driven by robust growth in income and deposit accumulation.
Emirates Islamic Reports Strong H1 2025 Performance
Emirates Islamic, a leading player in the UAE's Islamic banking sector, announced a net profit of AED 1.863 billion for the first half of 2025, representing a 12% increase year-on-year [1][2][3]. The bank's profit before tax reached a record AED 2.2 billion, up 19% from the prior period.
The bank's total income rose 9% to AED 2.9 billion, driven by growth in both funded and non-funded income streams [1][2]. Key growth indicators for H1 2025 include a 24% increase in total assets to AED 138 billion, a 13% rise in customer financing to AED 80 billion, and a 27% surge in customer deposits to AED 97.4 billion [1][2]. Current and savings account balances now make up 65.5% of the deposit base.
Operating profit improved by 6% year-on-year, despite expenses rising by 15%, reflecting continued investments to drive growth. Credit quality remained strong with a non-performing financing ratio of 2.8% and a healthy coverage ratio of 159.9% [2][3]. The bank's capital position is solid, with a Common Equity Tier 1 (CET-1) ratio of 17.4% and a capital adequacy ratio of 18.5%, well above regulatory requirements [1][2][3].
Emirates Islamic's performance was driven by strong growth in income, customer financing, and deposit inflows. The bank's headline financing to deposit ratio stood at 82%, within management’s target range, indicating prudent liquidity management [1][2].
CEO Farid AlMulla emphasized the bank's dual focus on financial performance and community engagement. The bank has introduced initiatives such as the ALPHA Youth Account to promote financial literacy among the younger generation and the Business Banking Diamond Account designed for high-value SMEs. The bank also collaborated with DURAR OCTA on financial services for a major real estate project in Ras Al Khaimah and expanded its Shariah-compliant wealth management offerings through a partnership with Leonteq Securities AG.
In a statement, Chairman Hesham Abdulla Al Qassim highlighted the bank's robust performance and ongoing digital transformation. The bank's leadership emphasizes a commitment to continued growth and delivering improved products to customers, supported by strong capital and liquidity.
In summary, Emirates Islamic’s H1 2025 results show robust profit growth, significant expansion in assets and deposits, healthy credit quality, and strong capital adequacy, highlighting a solid foundation for sustained growth in the remainder of 2025. The bank's coverage ratio is 159.9%, and it has a healthy net profit margin of 3.74%.
- Apart from the strong financial performance, Emirates Islamic is also investing in initiatives to foster financial literacy among the youth, such as the ALPHA Youth Account.
- The growth and performance of Emirates Islamic in various business sectors, including SME financing and Shariah-compliant wealth management, are backed by ongoing technological transformation.
- The commitment to community engagement is not only limited to financial services; Emirates Islamic has collaborated with DURAR OCTA on a major real estate project in Ras Al Khaimah.
- To maintain its position as a leading player in the UAE's Islamic banking sector, Emirates Islamic continues to focus on sustainable investment and innovation, as indicated by partnerships with institutions like Leonteq Securities AG.
- Despite the 15% increase in expenses, Emirates Islamic's operating profit improved by 6% in H1 2025, underscoring the bank's focus on growth and efficiency.
- As part of its strategic plan for the remainder of 2025, Emirates Islamic aims to maintain a healthy funding base, with a focus on expanding customer deposits, as demonstrated by the 27% surge in customer deposits in H1 2025.
