Emirates Islamic holds its 48th General Assembly Meeting

Emirates Islamic, one of the leading Islamic financial institutions in the UAE, held its forty-eighth General Assembly Meeting, on 21st February 2024.

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 2023.

Commenting on the bank’s performance, Hesham Al Qassim said, “Emirates Islamic has achieved a significant milestone in 2023, delivering its highest ever net profit of AED2.12 billion, marking a substantial 71 percent increase compared to 2022. Our outstanding performance underscores our resilience amidst global economic uncertainties and reaffirms our strong position in the regional Islamic banking landscape.”

Emirates Islamic Full year 2023 Financial Highlights:

Strong operating performance on higher funded and non-funded income

• Total income up 50 percent y-o-y driven by financing growth, low cost funding base and increased transaction volumes
• Operating expenses increased 15 percent y-o-y as the Bank invests for future growth
• Impairment Allowances increased 117 percent y-o-y due to financing growth
• Operating profit improved 82 percent y-o-y
• Net profit increased to a record AED2.12 billion, up by 71 percent
• Net profit margin improved to 4.69 percent

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

• Total assets increased by 18 percent to AED88 billion in 2023
• Customer financing increased by 11 percent to AED53.7 billion in 2023
• Customer deposits increased by 9 percent to AED61.3 billion in 2023 with Current Account and Savings Account balances at 76 percent of total deposits
• Credit Quality: Non-performing financing ratio improved to 6.3 percent with strong coverage ratio at 132 percent
• Capital: Tier 1 ratio of 18.9 percent and 20 percent Capital adequacy ratio reflects Bank’s strong capital position
• Headline Financing to Deposit ratio at 88 percent, reflects continued healthy liquidity in the UAE

Al Qassim added, “As the Islamic banking partner of choice for UAE nationals and residents, we strive to play an instrumental role in contributing to the advancement of the Islamic finance sector in 2024. Going forward, we will continue to drive the growth of Islamic banking in the UAE and support 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 GAM:

• 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 2023.
• To approve the report of the external auditor of the Bank for the year ended 31 December 2023.
• To approve the report of the Internal Shari’ah Supervision Committee for the year ended 31 December 2023.
• To approve the audited balance sheet and the profit and loss account of the Bank for the year ended 31 December 2023.
• To approve the remuneration of the Board for the year ended 31 December 2023.
• To approve the recommendation of the Board not to pay dividend to the shareholders of the Bank for the year ended 31 December 2023, 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 2023.
• To absolve the external auditor from liability for work conducted during the year ended 31 December 2023, or to dismiss and pursue the auditor, as the case may be.
• To approve the appointment of the external auditor for the year 2024 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 authorise, as detailed below, and to authorise the Bank to:
• undertake an update of the EI Sukuk Company Ltd. US$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 US$2,500,000,000 (or its equivalent in any other currencies) in addition to the Sukuk Programme, (the "New Programs" and, together with the Sukuk Programs, the "Programmes") and undertake any subsequent update of the New Programs;
• issue Shari'ah-compliant instruments under any of the Programs from time to time up to a maximum amount of US$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 US$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 Programs 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 Programs 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 authorise 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.