Deposits and financing rise, while net profit declines due to higher impairment charges.
Dubai: Customers of Emirates Islamic continued to borrow and deposit more in early 2026, helping the bank post a 7 per cent rise in operating profit to Dh1.1 billion for the first quarter, according to its earnings report released on Thursday.
The Dubai-based Islamic lender reported higher income from both financing and fees, lifting total income by 6 per cent year-on-year to Dh1.5 billion.
However, net profit declined 16 per cent to Dh900 million due to higher impairment charges, reflecting a more cautious stance amid ongoing global and regional uncertainties.
Hesham Abdulla Al Qassim said Emirates Islamic’s financial results for the first quarter of 2026 reflect the UAE’s financial resilience and preparedness in the current environment.
“We are pleased to announce that total income grew 6 per cent year-on-year and operating profit increased 7 per cent,” he said.
The bank’s balance sheet also expanded steadily. Total assets rose 2.5 per cent to Dh149 billion, while customer financing climbed 6 per cent to Dh94 billion.
Customer deposits increased 7 per cent to Dh109 billion, with a strong 66 per cent held in current and savings accounts, indicating healthy liquidity.
Farid AlMulla said the bank continued to grow across key segments despite the challenging backdrop.
“Customer financing increased by 6 per cent, while deposits grew 7 per cent… Our capital position remains extremely strong,” he said, noting a capital adequacy ratio of 15.7 per cent.
The bank’s non-performing financing ratio improved to 2.5 per cent, underlining stable asset quality.
Emirates Islamic also highlighted its ability to secure international funding, recently closing a $500 million, five-year commodity Murabaha facility with strong interest from global banks — a sign of continued investor confidence.
Looking ahead, Emirates Islamic said it will continue investing in technology, including artificial intelligence, to enhance customer experience and expand its Shariah-compliant offerings.
“Our strategy has guided our growth across retail, corporate, and institutional banking,” said Mohammad Kamran Wajid. “We remain committed to innovation and to supporting the UAE’s economic diversification.”
