Emirates Islamic holds its 47th General Assembly Meeting
Dubai, 22 February 2023: Emirates Islamic, one of the leading Islamic financial institutions in the UAE, held its forty-seventh General Assembly Meeting, on 22nd February 2023.
Hesham Abdulla Al Qassim, Chairman of Emirates Islamic, and Vice Chairman and Managing Director of Emirates NBD, presented a comprehensive review of the financial year ended 31 December 2022.
Commenting on the bank’s performance, Hesham Abdulla Al Qassim said: “We are delighted to announce that Emirates Islamic delivered its highest ever net profit of AED1.24 billion in 2022, marking a significant 51% increase compared to 2021. This remarkable achievement within a competitive market reflects our resilience and ingenuity in staying ahead of the curve, solidifying our firm position on the global Islamic banking map.”
Emirates Islamic Full year 2022 Financial Highlights:
- Strong operating performance on higher funded income and non-funded income coupled with a reduction in cost of risk
- Total income up 33% y-o-y driven by higher funded income and non funded income as a result of improved financing and deposit mix with higher profit rates feeding through to net profit margin
- Operating expenses increased 29% y-o-y as the Bank invests for future growth
- Impairment Allowances increased 5% y-o-y due to financing growth with a lower cost of risk at 76 bps
- Operating profit improved 36% y-o-y
- Net profit increased to a record AED 1.24 billion, up by 51%
- Net profit margin improved to 3.39%
- Strong capital and liquidity combined with a healthy deposit mix enables the Bank to continue supporting customers
- Total assets increased by 15% to AED 75 billion in 2022
- Customer financing increased by 14% to AED 48.4 billion in 2022
- Customer deposits increased by 19% to AED 56.3 billion in 2022 with Current Account and Savings Account balances at 74% of total deposits
- Credit Quality: Non-performing financing ratio improved to 7.0% with strong coverage ratio at 128%
- Capital: Tier 1 ratio of 17.9% and 19% Capital adequacy ratio reflects Bank’s strong capital position
- Headline Financing to Deposit ratio at 86%, reflects continued healthy liquidity in the UAE
Al Qassim added, “We aim to play an instrumental role in contributing to the advancement of the Islamic banking sector in 2023. The advantages of Islamic finance are becoming increasingly prevalent, and we remain dedicated to driving wider adoption of Shari’ah-compliant solutions and fulfilling the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE and Ruler of Dubai, to make Dubai the global capital of the Islamic economy.”
The following resolutions were passed at the General Assembly Meeting:
- To approve the report of the board of directors (‘the Board’) on the Bank’s activities and the financial statements for the year ended 31 December 2022.
- To approve the report of the external auditor of the Bank for the year ended 31 December 2022.
- To approve the report of the Internal Shari’ah Supervision Committee for the year ended 31 December 2022.
- To approve the audited balance sheet and the profit and loss account of the Bank for the year ended 31 December 2022.
- To approve the Bank’s staff bonus for the year ended 31 December 2022.
- To approve the remuneration of the Board for the year ended 31 December 2022.
- To approve the recommendation of the Board not to pay dividend to the shareholders of the Bank for the year ended 31 December 2022, based on the justifications presented by the Board in its report to the shareholders.
- To absolve members of the Board from liability for their work during the year ended 31 December 2022.
- To absolve the external auditor from liability for work conducted during the year ended 31 December 2022, or to dismiss and pursue the auditor, as the case may be.
- To approve the appointment of the external auditor for the year 2023 and to determine the fees for the same year.
Special Resolutions:
- To approve the Directors’ proposals with respect to Shari’ah Compliant non-convertible securities to be issued by the Bank subject to obtaining the necessary approvals from the relevant regulatory authorities, as detailed below, and to authorise the Bank to:
- undertake an update of the EI Sukuk Company Ltd. U.S.$2,500,000,000 trust certificate issuance programme (the "Sukuk Programme");
- establish any Shari'ah-compliant funding programme in up to a maximum amount of U.S. $2,500,000,000 (or its equivalent in any other currencies) in addition to the Sukuk Programme, (the "New Programmes" and, together with the Sukuk Programme, the "Programmes") and undertake any subsequent update of the New Programmes;
- issue Shari'ah-compliant instruments under any of the Programmes from time to time up to a maximum amount of U.S. $2,500,000,000 (or its equivalent in any other currencies); with the terms of any issuance decided by the relevant committee to which the Board of Directors has delegated such decisions;
- issue Shari'ah-compliant instruments on a standalone basis up to a maximum amount of U.S. $ 2,500,000,000 (or its equivalent in any other currencies); with the terms of any issuance decided by the relevant committee to which the Board of Directors has delegated such decisions (including, without limitation, through the issuance of sukuk, structured sukuk/trust certificates or other similar Shari'ah-compliant instruments or, as the case may be, through collateralised arrangements in Shari'ah-compliant format, as the same may be listed and/or admitted to trading on a stock exchange or any other trading platform and/or unlisted) ("Islamic Funding");
- in respect of:
- instruments issued or to be issued under any of the Programmes; and/or
- instruments issued or to be issued under Islamic Funding,
undertake any liability management exercise with respect thereto (including, without limitation, by way of consent solicitation, exchange offer, tender offer, buyback or any combination thereof);
- prepare and enter into such finance agreements and related documents as may be necessary (including, without limitation, any offering documents, relevant programme agreements, subscription agreements, dealer manager agreements, guarantees, hedging arrangements and all related and ancillary documents) in respect of the foregoing;
- establish one or more special purpose vehicles incorporated in suitable jurisdictions anywhere in the world, with the specific purpose of acting as the issuers of any sukuk or securities issued under any of the Programmes or, as the case may be, any securities issued by way of Islamic Funding; and
- enter into any document(s) and to take such further steps as may be necessary in connection with the Actions.
- To approve the amendment of the Bank’s Memorandum and Articles of Association in accordance with Decree No. 32 of 2021 and the regulations and legislation issued by the United Arab Emirates Central Bank and Securities and Commodities Authority without limitation. After obtaining the approval of the regulatory authorities, the amended Memorandum and Articles of Association will be published on the Bank's official website and the Dubai Financial Market website.
- To approve the amendment of the Bank’s Articles of Association in relation to calculation and payment of Zakat on behalf of its shareholders.
- To authorize the Board of Directors of the Bank, and/or any person so authorised by the Board of Directors, to adopt any resolution or take any action as may be necessary to implement the ordinary and Special Resolutions to be adopted by the general assembly in this meeting, including agreeing to any changes to any of the proposed amendments to the Memorandum and Articles of Association of the Bank which the Securities and Commodities Authority, the Central Bank or any other regulatory authorities may request or which may be required to prepare and certify a full set of the Articles incorporating all the amendments including the introductory part of the Articles and reference to the resolutions of the general assemblies of the Bank amending the Articles.
UAE
