Emirates Islamic 2016 profits hit by ‘challenging market conditions’

Emirates Islamic profits fell sharply in 2016, as impairments on financial assets significantly in the midst of “challenging market conditions.”

The Sharia-compliant lender, a subsidiary of Emirates NBD, reported a net profit of Dh105.6 million for 2016, a 76 per cent drop on the previous year, even as gross income remained stable.

Impairment costs rose to Dh1.3 billion for the year, a nearly two-thirds rise on the equivalent figure for 2015.

“With a stronger balance sheet and a focused medium term strategy, we shall continue to cement our position as a leader in the nation’s Islamic banking sector,” said Emirates Islamic chairman Hesham Abdulla Al Qassim, pointing to a 6 per cent growth in financing and investing receivables and a 5 per cent growth in customer deposits.

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