By: Mahmoud Gamal

Dubai – Mubasher: Islamic banks listed on the Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX) registered a 13.7% year-on-year profit increase during the full-year 2018.

The banks’ net profits hit a combined AED 9 billion ($2.45 billion) last year, compared to AED 7.93 billion ($2.16 billion) in 2017, according to data compiled by Mubasher.

Profits above expectations

Financial experts affirmed that 2018 financial results of Islamic banks listed on the UAE’s bourses were above expectations, reflecting the GCC nation’s solid national economy and the robustness of the banking sector.

The lenders’ 2018 earnings statements also reiterated the banking sector’s ability to face recent challenges.

The banks’ strong performance indicators were attributed to the high demand for sharia-compliant financial products by individuals, coupled with the UAE’s efforts to be a hub for Islamic financing, financial expert Wadah Al Taha told Mubasher.

He added that Islamic banks are more attractive on the back of providing low-risk products compared to traditional lenders.

Most profitable

Dubai Islamic Bank (DIB) generated the highest earnings in 2018 among its peers with net profits worth AED 4.916 billion, acquiring 55% of the total, followed by Abu Dhabi Islamic Bank (ADIB) with AED 2.5 billion.

Emirates Islamic Bank’s (EIB) profits grew 32% year-on-year to AED 924.26 million during the full-year 2018, followed by Sharjah Islamic Bank (NBS) and Ajman Bank with AED 510.37 million and AED 170 million, respectively.

Assets’ growth

Total assets of Islamic banks operating in the UAE grew 5.4% to AED 474.96 billion in 2018, versus AED 450.475 billion in 2017.

NBS’s assets topped the list with total assets worth AED 44.74 billion, followed by Ajman Bank and DIB with AED 22.64 billion and AED 224 billion, respectively.

On the other hand, EIB’s assets were the lowest, recording AED 58.37 billion by the end of 2018.

Expectations

Al Taha expected 2019 to witness more mergers among banks, capped by the consolidation of Abu Dhabi Commercial Bank (ADCB), Union National Bank (UNB) and Al Hilal Bank. 

Translated by: Kholoud Mohamed Hussein