Emirates Islamic posts 482 mln dirhams loss for full-year 2020
UAE’s Emirates Islamic posted a 145% drop in profit to register a loss of 482 million dirhams ($131.25 mln) for 2020 compared to a profit of 1.06 billion dirhams in 2019.
It was affected by lower rates, a decline in non-funded income due to the slowdown in the economy and an increase in impairment allowances, the bank said in a statement on Wednesday (Jan 27).
Total net impairment loss surged by 207.88% to 1.49 billion dirhams compared to 482.77 million dirhams in 2019.
“Despite these challenges the Bank’s balance sheet remains healthy and growth-oriented with the headline financing to deposits ratio at 87%, Tier 1 capital ratio at 18% and Capital Adequacy Ratio at 19.2%,” said CEO Salah Mohammad Amin.
On its balance sheet, assets increased by 9% to 70.57 billion dirhams. On the liabilities side, customer deposits nudged up by 3.43% to 46.88 billion dirhams from 45.32 billion dirhams in 2019.
EMIRATES ISLAMIC KEY STATS FY2020 vs. 2019
- Total income 2.1 bln dirhams, down by 22%
- Net loss 482 mln dirhams, down by 145%
- Assets 70.57 bln, up by 9%
- Financing and investing receivables 40.8 bln dirhams, up by 9%
- Customer accounts 46.88 bln, up by 3%
- Impaired financing ratio 9%, coverage ratio 109%
Emirates Islamic’s parent company, Emirates NBD, posted 7 billion dirhams in profit, a slump of 52% compared to 2019. Its impairment allowances increased by 65% to 7.9 billion dirhams.
© SalaamGateway.com 2021 All Rights Reserved
