Emirates Islamic, a leading Islamic bank in the United Arab Emirates, has announced a stellar performance in the first quarter of 2024, achieving record profits. The bank's net profit surged to AED 811 million, marking a significant 35% increase compared to the same period in 2023. This financial feat underscores the bank's robust financial management and its ability to capitalize on the positive economic climate in the region.
Attributing to the impressive profit growth was a healthy 19% rise in total income. This upswing was driven by a combination of factors, including stronger income streams from both funded and non-funded activities. Funded income typically originates from sources like interest on loans and advances, while non-funded income encompasses service charges and commissions. The growth in both categories signifies Emirates Islamic's success in expanding its customer base and diversifying its revenue streams.
Further solidifying the bank's financial strength was a noteworthy 28% year-on-year increase in operating profit. This impressive rise highlights the bank's operational efficiency and its ability to control expenses effectively. Operating profit serves as a crucial indicator of a company's core business profitability, and Emirates Islamic's substantial growth in this area suggests a well-oiled operational machine.
Emirates Islamic's financial performance aligns with the broader economic optimism currently prevailing in the region. The bank's CEO, Farid AlMulla, emphasized this connection, stating, "This year, Emirates Islamic proudly celebrates 20 years since our inception in the UAE. Our record profitable growth in the first quarter of 2024 reflects not only the bank's strategic direction but also the positive economic outlook within the buoyant regional economy."
The bank's financial health is further bolstered by a robust capital and liquidity position, along with a healthy mix of deposits. This strong foundation enables Emirates Islamic to continue providing unwavering support to its customers. Additionally, the bank's total assets witnessed an appreciable increase of 8% to AED 95 billion, demonstrating its ongoing growth trajectory.
Emirates Islamic's performance in the first quarter of 2024 paints a picture of a dynamic and successful financial institution. The bank's commitment to strategic financial management, coupled with its ability to capitalize on favorable economic conditions, has positioned it for continued success in the years to come.