Emirates Islamic Bank's Record Profit Surge in 2025
Emirates Islamic Bank reports a record AED 2.2 billion profit before tax in H1 2025.
Summary
Emirates Islamic Bank achieved a record AED 2.2 billion profit before tax in the first half of 2025, driven by strong income and deposit growth.
Emirates Islamic Bank PJSC, a leading Islamic bank in the UAE, has made headlines with its remarkable financial performance in the first half of 2025. The bank reported a record AED 2.2 billion profit before tax, showcasing a robust growth trajectory. This achievement underscores the bank's strategic prowess and its ability to navigate the competitive banking landscape effectively.
The bank's total income surged by 9% year-on-year, reaching AED 2.9 billion. This growth was propelled by both funded and non-funded income streams, reflecting the bank's diversified revenue model. Customer financing saw a significant increase of 13%, amounting to AED 80 billion, while customer deposits experienced an exceptional 27% growth, totaling AED 97.4 billion. Notably, current and savings account balances now constitute 65.5% of total deposits, highlighting the bank's strong deposit base.
Operating performance was further bolstered by a 6% year-on-year improvement in operating profit. Despite a 15% increase in expenses, driven by continued investments to fuel growth, the bank maintained a healthy net profit margin of 3.74%. The net profit reached AED 1.863 billion, marking a 12% increase compared to the previous year.
Emirates Islamic Bank's capital and liquidity positions remain robust, with total assets growing by 24% to AED 138 billion. The bank's credit quality is commendable, with a non-performing financing ratio of 2.8% and a strong coverage ratio of 159.9%. The Common Equity Tier 1 ratio stands at 17.4%, while the capital adequacy ratio is at 18.5%, reflecting a stable capital foundation.
Given these impressive financial metrics, Emirates Islamic Bank is well-positioned to continue its growth trajectory. The bank's strategic focus on expanding its product offerings and enhancing customer experience is likely to yield further positive results. For investors, the bank's strong financial performance and stable capital position suggest a promising outlook.
In conclusion, considering the bank's record profit, robust growth, and stable financial metrics, the recommendation is to buy Emirates Islamic Bank shares. The bank's strategic initiatives and strong market position make it an attractive investment opportunity in the Islamic banking sector.
Source
Summary
Emirates Islamic reported a record profit before tax of AED 2.2 billion for the first half of 2025, driven by strong income and deposit growth. Total income increased by 9% year-on-year to AED 2.9 billion due to growth in both funded and non-funded income streams. Customer financing rose by 13% to AED 80 billion, and customer deposits grew by 27% to AED 97.4 billion, with current and savings accounts making up 65.5% of total deposits. The bank's total assets increased by 24% to AED 138 billion. Expenses rose by 15% due to ongoing investments, while impairment allowances were at AED 136 million. Operating profit improved by 6% year-on-year, and net profit increased by 12% to AED 1.863 billion, with a net profit margin of 3.74%. The bank maintained a strong capital position with a Common Equity Tier 1 ratio of 17.4% and a capital adequacy ratio of 18.5%. The non-performing financing ratio stood at 2.8%, with a coverage ratio of 159.9%. The financing to deposit ratio was 82%, within the management's target range.
