Emirates Islamic holds its 45th General Assembly Meeting
Dubai, 24 February 2021
Emirates Islamic (DFM: EIB), one of the leading Islamic financial institutions in the UAE, held its forty-fifth General Assembly Meeting virtually.
At the General Assembly Meeting, a review of the year ended 31 December, 2020 was presented. Commenting on the Group’s performance, Hesham Abdulla Al Qassim, Chairman of Emirates Islamic, Vice Chairman and Managing Director of Emirates NBD, said “The COVID-19 pandemic caused disruptions to all global economies, industries and individuals. As a result of the low profit rate environment coupled with a more challenging business environment due to the pandemic, Emirates Islamic reported a total income of AED 2.1 billion, with a net loss of AED 482 million for 2020. The Group’s balance sheet remains healthy with strong impairment coverage, liquidity and capital ratios.
“We continue to play a pivotal role in the growth of the Islamic banking sector in the UAE and supporting 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 Islamic economy. We are going into 2021 with a commitment to advance the Islamic banking sector and bring the benefits of Islamic banking solutions to even more individuals and institutions in the UAE,” added Al Qassim.
Emirates Islamic Full Year 2020 Financial Highlights:
- Total income of AED 2.1 billion, lower by 22% year-on-year.
- Funded income margins lower by 52 bps year-over-year due to lower profit rate environment.
- Net loss of AED 482 million lower by 145% year-on-year impacted by the lower rates, a decline in non-funded income due to the slowdown in the economy and an increase in impairment allowances.
- Total assets at AED 70.6 billion, increased by 9% from end 2019.
- Financing and investing receivables at AED 40.8 billion, increased by 9% from end 2019.
- Customer accounts at AED 46.9 billion, increased by 3% from end 2019.
- Current and saving accounts balances represent 69% of total customer deposits.
- Headline financing to deposits ratio at 87%, demonstrates a healthy liquidity position.
- Tier 1 capital ratio at 18% and capital adequacy ratio at 19.2%.
- Impaired financing ratio is at 9% with a strong coverage ratio of 106.9%.
Al Qassim concluded: “I would like to extend my gratitude to our Board of Directors, our management team and all Emirates Islamic employees for their incredible dedication to our performance as we have worked through an extraordinary set of events. I would also like to thank our loyal and valued customers and shareholders for their continued trust in us as we look forward to a brighter year ahead.”
The following resolutions were passed at the General Assembly Meeting:
- Review and approval of the Directors’ Report for the fiscal year ending 31 December 2020.
- Review and approval of the Auditor’s Report for the fiscal year ending 31 December 2020.
- Review and approval of the Internal Shari’ah Supervision Committee for the year ending 31 December 2020.
- Review and approval of the Consolidated Financial Statements of the Group for the year ending 31 December 2020.
- Appointment of Internal Shari’ah Supervision Committee members, subject to UAE Central Bank approval.
- Approval of the Bank’s staff bonus.
- Absolving the Board of Directors from responsibility for the fiscal year ending 31 December 2020.
- Absolving the Auditors from responsibility for the fiscal year ending 31 December 2020.
- Appointing Deloitte & Touche (M.E.) as Auditors of the Group for the year 2021 and determining their remuneration.
- Appointing two representatives for the shareholders and determining their fees in accordance with paragraph (4) of Article (40) of the Corporate Governance Guide issued by Resolution of the Chairman of the SCA No. (3/R.M) of 2020.
- To consider and approve the amendment of the following Articles of the Company’s Memorandum & Articles, including but not limited to (Article 31 - Article 30 - Article 33 - Article 41 - Article 43 - Article 35 - Article 37 - Article 38 - Article 56 - Article 70) to comply with the amendment to the Companies Law No. 2 of 2015.
- To approve the Directors’ Proposals with respect to Shari’a Compliant non-convertible securities to be issued by the Bank subject to obtaining the necessary approvals from the relevant regulatory authorities, as detailed below:
- undertake an update of the EI Sukuk Company Ltd. U.S.$2,500,000,000 trust certificate issuance programme (the "Sukuk Programme");
- establish any shari'a-compliant funding programme up to a maximum amount of US$ 2,500,000,000 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'a-compliant instruments under any of the above Programmes from time to time up to an amount of US$ 2,500,000,000 or its equivalent in other currencies; with the terms of any issuance decided by the relevant committee to which the Board of Directors has delegated such decisions and such issuance to be settled, no later than one year commencing from the date of the resolution in accordance with the provisions of Article 230 of the Companies Law;
- issue shari'a-compliant instruments on a standalone basis up to a maximum amount of US$ 2,500,000,000 or its equivalent in other currencies; with the terms of any issuance decided by the relevant committee to which the Board of Directors has delegated such decisions and such issuance to be settled, no later than one year commencing from the date of the resolution in accordance with the provisions of Article 230 of the Companies Law (including, without limitation, through the issuance of sukuk, structured sukuk/trust certificates or other similar shari'a-compliant instruments or, as the case may be, through collateralised arrangements in shari'a-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 / base prospectus, relevant programme agreements / dealer 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.”