Emirates Islamic posts AED 2.2 billion Profit Before Tax in first half of 2025, driven by robust growth in income and deposits.
Emirates Islamic Achieves Record Profits in H1 2025
Emirates Islamic, a leading Islamic bank in the UAE, has reported a strong increase in profits for the first half of 2025. The bank recorded a profit before tax of AED 2.2 billion and a net profit of AED 1.863 billion, marking a 12% year-on-year growth.
Total income rose by 9% to AED 2.9 billion, supported by growth in both funded and non-funded income streams. Key growth drivers included a 24% increase in total assets to AED 138 billion, a 13% rise in customer financing to AED 80 billion, and a 27% surge in customer deposits to AED 97.4 billion. Current and Savings Account balances now make up 65.5% of the deposit base.
The bank maintained a healthy non-performing financing ratio of 2.8%, a high coverage ratio, and robust capital adequacy ratios. Its headline financing to deposit ratio stood at 82%, within the management’s target range.
Emirates Islamic's performance was driven by strong growth in income, customer financing, and deposit inflows. The bank's capital adequacy ratio stands at 18.5%, and its Common Equity Tier 1 ratio is 17.4%.
In terms of growth strategies, the bank has emphasized continued investments to drive growth. These investments focus on improving product offerings, enhancing customer experience, and leveraging a healthy deposit mix and strong liquidity to support expansion. As a result, expenses rose by 15% year-on-year.
Notable developments include the expansion of the bank's Shariah-compliant wealth management offerings through a partnership with Leonteq Securities AG. Emirates Islamic also introduced the ALPHA Youth Account to promote financial literacy among the younger generation and the Business Banking Diamond Account designed for high-value SMEs.
The bank collaborated with DURAR OCTA on financial services for a major real estate project in Ras Al Khaimah. Operating profit improved by 6%, despite the increase in expenses due to continued investments in growth and technology.
CEO Farid AlMulla emphasised the bank's dual focus on financial performance and community engagement. Chairman Hesham Abdulla Al Qassim highlighted the bank's robust performance and ongoing digital transformation. The bank delivered a record AED 2.2 billion profit before tax for the first half of 2025, marking a 19% year-on-year increase.
In summary, these financial results and strategic investments position Emirates Islamic as one of the UAE's leading Islamic banks with strong growth momentum in 2025. The bank's healthy net profit margin of 3.74% and strong coverage ratio of 159.9% underscore its financial stability.
- Emirates Islamic's impressive AED 2.2 billion profit before tax in H1 2025 signifies its prominence among UAE's leading Islamic banks.
- The bank's net profit of AED 1.863 billion, a 12% year-on-year growth, reflects its financial strength and growth.
- Investments in technology and product offerings are key aspects of Emirates Islamic's strategy to drive growth and enhance customer experience.
- The bank's ongoing digital transformation, as demonstrated by its partnership with Leonteq Securities AG, showcases its commitment to innovation in financial services.
- Emirates Islamic's focus on financial literacy among the youth is evident in the introduction of the ALPHA Youth Account.
- Sustainable growth is a priority for the bank, as evidenced by the Business Banking Diamond Account designed for high-value SMEs.
- As the bank continually invests in its services, its operational profit improved by 6% despite the rise in expenses, highlighting its commitment to both financial performance and community engagement.
