DUBAI/October 20: Emirates Islamic, one of the leading Islamic financial institutions in the UAE, reported a net loss of AED311 million for the first nine months of 2020, thanks to the increase in impairment allowances in light of the challenging economic climate.
Emirates Islamic’s total assets increased 8 per cent to AED70.1 billion during the year to date, whereas the financing and investing receivables grew 9 per cent to AED41 billion as of September end, 2020.
Customer accounts reached AED45.9 billion after having increased by 1 per cent from end 2019. Total income of the bank, which is a wholly owned subsidiary of Emirates NBD, was lower by 23 per cent to AED 1.6 billion.
Impaired financing ratio of the bank was at 8.3 per cent with strong coverage ratio of 109.1 per cent. The bank enjoyed a solid Tier 1 capital ratio of 18 per cent and capital adequacy ratio at 19.2 per cent as of September end.
Salah Mohammed Amin, Chief Executive Officer (CEO) of Emirates Islamic said the results for the first nine months of 2020 are a result of the challenges faced due to the pandemic, and they reflect the bank’s prudent and cautious approach in the current situation.
“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,” he added.
Emirates Islamic offers a comprehensive range of Shari’a-compliant products and services across the Personal, Business and Corporate banking spectrum, with a network of 38 branches and 179 ATMs/CDMs across the UAE.