Islamic Finance

Emirates Islamic posts another quarterly loss as Dubai Islamic earns 1 bln dirhams profit


It’s a tale of two Islamic banks. UAE’s Emirates Islamic and Dubai Islamic Bank both reported third-quarter earnings this week but only one posted a profit.

Emirates Islamic announced a loss of 323.084 million dirhams (-$87.97 million) for the three months through September as Dubai Islamic Bank earned a net profit of 1.007 billion dirhams ($274 million).

Emirates Islamic said it “continued to increase impairment allowances in light of the challenging economic climate”. This is the second consecutive quarter it has reported a loss. The bank posted 143.141 million dirhams in losses in the second quarter after a profit of 154.987 million dirhams for January through March.

Dubai Islamic Bank’s 1,006,619 thousand dirhams in profit for the third-quarter is almost flat from the 1,007,305 thousand dirhams it announced for the second-quarter. Year-on-year, it comes in at 20% lower than for the same three months in 2019. 

In a press statement announcing DIB’s January through September earnings, CEO Adnan Chilwan said the bank’s total income of 9,891,748 thousand dirhams is “a significant achievement during these unprecedented times”. The amount is down slightly from 10,249,957 thousand dirhams for the same period in 2019. 

“Our diversified revenue streams continue to sustain the bank’s healthy profitability levels during the period as we see the net operating revenue actually increase to over 6.9 billion dirhams despite the pandemic,” said the CEO.

Here are key numbers from both banks for January through September 2020:

‘000 dirhams

Emirates Islamic

Dubai Islamic Bank

Net profit

(311,238)

3,124,488

Total income

1,573,571

9,891,748

Financing

41,039,648 (Financing receivables)

197,436,356 (Islamic financing and investing assets, net)

Customer deposits

45,869,737

214,642,324

Assets

70,120,861

299,303,470

Non-performing financing ratio

8.3%

4.8%

Data source: Respective banks’ earnings statements

 

© SalaamGateway.com 2020 All Rights Reserved


tags:

Earnings