Emirates Islamic Operating Profit rises 7% to AED 1.1 billion in Q1 2026

4 Min | 23 April 2026

Dubai, 23 April 2026: Emirates Islamic, one of the leading Islamic financial institutions in the UAE, announced its financial results for the first quarter of 2026. The Bank reported an operating profit of AED 1.1 billion for the quarter ending 31 March 2026, 7% growth over the same period last year. Both funded and non-funded income increased during the quarter, driving total income 6% higher to AED 1.5 billion in Q1 2026.

Key Highlights – Q1 2026

Strong operating performance on higher funded and non-funded income

Total income up 6% y-o-y driven by higher funded and non-funded income
Expenses increased 6% y-o-y as Emirates Islamic continues its strategic investments to drive growth
Impairment Allowances at AED 90 million
Operating profit improved 7% y-o-y
Net profit decreased 16% y-o-y to AED 0.9 billion due to higher impairment charges
Net profit margin healthy at 3.1%

Strong capital and liquidity combined with a healthy deposit mix enables the Bank to continue supporting customers

Total assets increased 2.5% to AED 149 billion during first quarter of 2026
Customer financing increased 6% to AED 94 billion during first quarter of 2026
Customer deposits increased 7% to AED 109 billion in Q1 2026 with Current Account and Savings Account balances at a very healthy 66% of total deposits
Credit Quality: Non-performing financing ratio improved to 2.5% with strong coverage ratio at 153.2%
Capital: Tier 1 ratio of 14.6% and 15.7% Capital adequacy ratio reflecting the Bank’s extremely strong capital position
Headline Financing to Deposit ratio at 86%, reflects continued healthy liquidity in the UAE

Hesham Abdulla Al Qassim, Chairman of Emirates Islamic said:

“Emirates Islamic’s financial results for the first quarter of 2026 reflect the nation’s financial resilience and preparedness through the current environment. We are pleased to announce that total income grew 6% y-o-y and operating profit increased 7%.
We recently concluded a USD 500-million, five-year Club Commodity Murabaha term facility, a significant achievement in securing long-term USD funding for Emirates Islamic. With an extremely competitive profit rate for a five-year tenor, the facility was accomplished within an accelerated timeframe and attracted strong interest from leading international banks, reflecting Emirates Islamic’s robust relationships with global financial institutions and our reputation as a trusted partner.
As an Islamic bank, we remain committed to corporate social responsibility and humanitarian values that define our community. We are proud to contribute to the renovation of Dubai Hospital facilities supporting The Hope Fund projects, an initiative by Al Jalila Foundation, the philanthropic arm of Dubai Health.
Going forward, we will continue to be guided and inspired by the leaders of our great nation and drive the success and growth of the Islamic banking sector in the UAE.”

Farid Al Mulla, Chief Executive Officer of Emirates Islamic said:

“Emirates Islamic has shown consistent growth in Q1 2026 across key financial indicators, with total assets increasing 2.5% compared to year end to AED 149 billion. Despite current conditions, customer financing increased by 6% to AED 94 billion, while deposits grew 7% to AED 109 billion, with Current Account and Savings Account balances at a healthy 66% of total deposits.
Our capital position remains extremely strong with a capital adequacy ratio of 15.7% while our credit quality continues to be robust as the Bank’s non-performing financing ratio improved to 2.5% in the first quarter of the year.
Keeping the current situation in mind, we remain committed to all our customers, including individuals, SMEs and corporates, offering them peace of mind with operational support and enhanced services to support their banking needs.
Looking ahead in 2026, we will continue to invest in artificial intelligence and other emerging technologies, redefine how we engage with our customers and further our ambition of becoming the Islamic banking leader in the UAE.”

Mohammad Kamran Wajid, Deputy Chief Executive Officer of Emirates Islamic said:

“At Emirates Islamic, we have a clearly defined strategy which has guided our growth and expansion across all segments including Retail Banking, Business Banking, Corporate and Institutional Banking and Treasury.
We remain a trusted financial partner for major regional entities as we signed significant corporate deals during this quarter. These partnerships reflect our commitment to innovation and expanding our suite of Shariah-compliant banking solutions to meet the evolving needs of our customers across sectors.
Enhancing financial literacy in the younger generation is a key objective of Emirates Islamic and we had launched the ALPHA Youth Account last year as part of this objective. This year, we were proud to be the presenting sponsors of the UAE Spelling Bee Championship for school students across the nation, reinforcing our commitment to empowering young minds by supporting both academic excellence and financial literacy.
Our commitment to supporting the UAE’s progress and economic diversification remains strong, underpinning our integral role in fostering sustainable growth across all sectors.”