Emirates Islamic hits AED 1B profit in Q1 2025

Photo: Dubai Government Media Office

Emirates Islamic Bank has started 2025 on a high note by earning a record net profit of AED 1 billion in the first three months of the year. This is a 24% increase compared to the same time last year. The strong results show that the UAE’s positive business environment is helping the bank grow steadily.

What Happened in Q1 2025?

The bank’s total income reached AED 1.45 billion in the first quarter, which is 8% higher than last year. This was because both income from lending (funded) and other services (non-funded) went up.

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Although the bank’s expenses rose by 15% as it continues to invest in its future growth, it still saw a 5% increase in operating profit. One major reason for the high profit was a credit of AED 169 million from recoveries of earlier loan losses.

The bank's profit margin—how much money it earns from its services—stood at a strong 3.85%.

Financial Strength

• Total assets grew by 11%, reaching AED 123 billion.

• Customer financing rose by 7% to AED 75 billion.

• Customer deposits increased by 8%, hitting AED 83 billion. Of these deposits, 71% came from Current and Savings Accounts, showing a strong and healthy deposit mix.

• Loan quality improved too, with non-performing loans dropping to 4%, and the bank set aside a solid 146% as coverage for any possible bad loans.

• Capital strength was high, with a Tier 1 ratio of 17.8% and total capital adequacy of 18.9%.

• Financing to deposit ratio stood at 91%, showing the bank has enough liquidity to serve its customers well.

Leadership Comments

Hesham Abdulla Al Qassim, Chairman of Emirates Islamic, said this was the first time the bank’s profit in a quarter crossed AED 1 billion. He explained that the growth was mainly driven by higher income from loans and services. He was also proud of the 8% increase in deposits and the 7% growth in financing.

He said Emirates Islamic is committed to helping the UAE’s economy by supporting both individuals and businesses. He also shared that the bank issued a USD 750 million Sukuk (Islamic bond) this quarter. This received a strong response, with over USD 1.6 billion in demand from local and international investors.

He added that as a bank deeply connected to the UAE community, they remain focused on social responsibility. During Ramadan, the bank donated AED 5 million to the Fathers’ Endowment campaign launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum. The goal of the campaign is to provide healthcare to those in need by creating a lasting support fund.

Al Qassim also highlighted that for over 20 years, Emirates Islamic has been a key part of the country’s Islamic banking journey and is dedicated to continuing that role.

CEO Shares Future Plans

Farid AlMulla, the CEO of Emirates Islamic, said the bank’s profit in Q1 2025 was its highest ever, and total assets increased to AED 123 billion.

He said the bank is focusing on digital banking and wants to make sure customers can bank easily from anywhere. The bank is always adding new features to its mobile and online banking platforms.

He also talked about the bank’s efforts to support youth. Emirates Islamic worked with the Community Development Authority and Zayed University to teach students about money management. This matches Dubai’s Social Agenda 33, which aims to build a better future for all.

The bank also organized a fun event called The Emirates Islamic Ultimate Football Clash, a gaming tournament in partnership with Visa. It gave young people a chance to take part in exciting competitions.

Farid AlMulla added that Emiratisation remains a big goal. Right now, 39.8% of their staff are UAE Nationals. The bank is partnering with local universities like Skyline University and the American University in the Emirates to help train and hire young Emiratis.