24/04/2026 03:40 AST
Emirates Islamic, one of the leading Islamic financial institutions in the UAE, has reported an operating profit of AED1.1 billion ($299.52 million) for the quarter ending March 31, 2026, 7% growth over the same period last year.
Both funded and non-funded income increased during the quarter, driving total income 6% higher to AED1.5 billion in Q1 2026.
However, net profit decreased 16% y-o-y to AED0.9 billion due to higher impairment charges, the bank said.
Key Highlights - Q1 2026
Total income up 6% y-o-y driven by higher funded and non-funded income
Expenses increased 6% y-o-y as Emirates Islamic continues its strategic investments to drive growth
Impairment Allowances at AED90 million
Operating profit improved 7% y-o-y
Net profit margin healthy at 3.1%
Total assets increased 2.5% to AED 149 billion during first quarter of 2026
Customer financing increased 6% to AED 94 billion during first quarter of 2026
Customer deposits increased 7% to AED 109 billion in Q1 2026 with Current Account and Savings Account balances at a very healthy 66% of total deposits
Credit Quality: Non-performing financing ratio improved to 2.5% with strong coverage ratio at 153.2%
Capital: Tier 1 ratio of 14.6% and 15.7% Capital adequacy ratio reflecting the Bank's extremely strong capital position
Headline Financing to Deposit ratio at 86%, reflects continued healthy liquidity in the UAE
Hesham Abdulla Al Qassim, Chairman, Emirates Islamic said: "Emirates Islamic's financial results for the first quarter of 2026 reflect the nation's financial resilience and preparedness through the current environment. We are pleased to announce that total income grew 6% y-o-y and operating profit increased 7%.
"We recently concluded a $500-million, five-year Club Commodity Murabaha term facility, a significant achievement in securing long-term USD funding for Emirates Islamic. With an extremely competitive profit rate for a five-year tenor, the facility was accomplished within an accelerated timeframe and attracted strong interest from leading international banks, reflecting Emirates Islamic's robust relationships with global financial institutions and our reputation as a trusted partner."
Farid AlMulla, Chief Executive Officer, Emirates Islamic said: "Emirates Islamic has shown consistent growth in Q1 2026 across key financial indicators, with total assets increasing 2.5% compared to year end to AED149 billion. Despite current conditions, customer financing increased by 6% to AED94 billion, while deposits grew 7% to AED109 billion, with Current Account and Savings Account balances at a healthy 66% of total deposits.
"Our capital position remains extremely strong with a capital adequacy ratio of 15.7% while our credit quality continues to be robust as the Bank's non-performing financing ratio improved to 2.5% in the first quarter of the year.
"Keeping the current situation in mind, we remain committed to all our customers, including individuals, SMEs and corporates, offering them peace of mind with operational support and enhanced services to support their banking needs.
"Looking ahead in 2026, we will continue to invest in artificial intelligence and other emerging technologies, redefine how we engage with our customers and further our ambition of becoming the Islamic banking leader in the UAE," he said.
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