The Banking Executive Magazine - January 2022 Issue

Emirates Islamic Emirates Islamic's Net Profit GROWS TO AED 823MLN FOR FY 2021 Emirates Islamic’s net profit jumped to AED 823 million for 2021 on higher non-funded income and a sig- nificant reduction in the cost of risk reflecting the strong economic recov- ery. KEY HIGHLIGHTS – 2021 • Strong operating performance on higher non-funded income cou- pled with a reduction in cost of risk • Total income up 15% y-o-y driven by higher non funded income • Operating expenses increased 10% y-o-y • Impairment Allowances reduced 74% y-o-y with a lower cost of risk at 91 bps • Operating profit improved 20% y- o-y • Net profit increased to AED 823 million • Net profit margin at 2.62%, follow- ing stable profit rates in 2021 • Strong capital and liquidity com- bined with a healthy deposit mix enables the Bank to continue sup- porting customers • Total assets remained robust at AED 65 billion, maintaining a strong asset base • Customer financingat AED 42.6 billion, increased 4% from 2020 • Customer deposits at AED 47.3 bil- lion, increased 1% from 2020 with CASA balances at 78% of total de- posits • Credit Quality: Non-performing fi- nancing ratio improved to 8.2% with strong coverage ratio at 115% • Capital: Tier 1 ratio of 18.6% and 19.7% Capital adequacy ratio re- flects Bank’s strong capital position • Headline Financing to Deposit ratio at 90%, remaining within the management’s target range HESHAM ABDULLA AL QASSIM, CHAIRMAN, EMIRATES ISLAMIC AND VICE CHAIRMAN AND MANAGING DIRECTOR OF EMIRATES NBD: • We are delighted to announce a strong set of financial results with the BANKING EXECUTIVE 34 ISSUE 157 JANUARY 2022