Higher funded and non-funded income supported operating profit and balance-sheet growth
Emirates Islamic reported AED2.2 billion ($599 million) in operating profit for the first half of 2026, representing a 10 percent increase from the same period last year as higher funded and non-funded income supported its performance.
Total income rose 8 percent year on year to AED3.2 billion, while the bank recorded a net profit of AED1.7 billion and maintained a net profit margin of 3.1 percent, according to its official first-half financial results.
Operating expenses increased 3 percent to AED900 million, reflecting continued strategic investment in the bank’s growth plans. The slower increase in expenses relative to income helped reduce the cost-to-income ratio to 29.1 percent.
Impairment allowance charges reached AED251 million during the first six months of the year.
Balance sheet expands
Total assets increased 5.5 percent from the end of 2025 to AED153.8 billion ($41.9 billion), reflecting continued expansion across the bank’s financing and deposit businesses.
Customer financing rose 9.1 percent during the first half to AED97 billion, while customer deposits increased 8.3 percent to AED110.6 billion.
Current and savings account balances represented 65 percent of total deposits, providing the bank with a substantial base of comparatively low-cost customer funding.
The headline financing-to-deposit ratio stood at 88 percent, remaining comfortably within the range targeted by management.
Asset quality remained stable, with the non-performing financing ratio at 2.5 percent. The bank maintained a financing coverage ratio of 157.5 percent, providing a substantial buffer against potential credit losses.
Its Common Equity Tier 1 ratio stood at 14.8 percent, while the overall capital adequacy ratio reached 15.9 percent. Emirates Islamic said the figures reflected its strong and stable capital position.
Economic strength reflected
Hesham Abdulla Al Qassim, Chairman of Emirates Islamic, said the first-half results reflected the strength of the UAE economy, with total income supported by higher funded and non-funded earnings and operating profit rising 10 percent.
He said the UAE’s continued growth demonstrated the country’s leadership and commitment to progress and prosperity.
Al Qassim added that Emirates Islamic remained committed to supporting the UAE’s economic ambitions and delivering sustainable long-term value for customers, companies and communities in accordance with Islamic finance principles.
The bank continued expanding its Islamic investment and funding products during the period. It launched what it described as the UAE’s first Shariah-compliant Certificate of Deposit Programme, designed to diversify opportunities for investors, strengthen its funding base and expand its international reach.
Sustainable finance also remained a key growth area. Emirates Islamic completed several financing facilities linked to environmental, social and governance targets during the first half.
Sustainable finance recognition
The bank received the Sustainable Finance Deal of the Year – Middle East award at the Global Finance Sustainable Finance Awards 2026.
The recognition followed Emirates Islamic’s issuance of what it described as the world’s first sustainability-linked financing sukuk in 2025.
Farid AlMulla, Chief Executive Officer of Emirates Islamic, said the bank maintained a robust growth trajectory during the first six months of 2026, demonstrating the resilience of its business model.
He said the 5.5 percent increase in total assets to AED153.8 billion underlined Emirates Islamic’s ability to deliver sustainable growth in the prevailing operating environment.
AlMulla added that the bank’s strong capital, liquidity and diversified funding base supported customer growth, enabling financing to increase 9.1 percent and deposits to expand 8.3 percent.
He said current and savings accounts representing 65 percent of total deposits reflected strong customer relationships, continued trust and the quality of the bank’s digital proposition.
Digital investments expand
Emirates Islamic became the first Islamic bank in the UAE to provide digital gold and silver investments through its EI+ mobile application.
The service gives customers digital access to Shariah-compliant precious-metal investments, broadening the wealth diversification products available through the bank’s digital channels.
AlMulla said Emirates Islamic’s people-first culture also received external recognition after the bank was ranked among the 10 most inspiring workplaces in the Middle East and Africa.
He said the recognition reinforced the bank’s position as an employer of choice and supported its long-term growth.
Emirates Islamic also expanded the risk-management services offered to companies by introducing Shariah-compliant commodity hedging solutions. The products include profit-rate hedging and foreign exchange options intended to help clients manage commodity price volatility, mitigate financial risks and protect cash flows.
Business services grow
Mohammad Kamran Wajid, Deputy Chief Executive Officer of Emirates Islamic, said the bank continued helping businesses grow and create lasting value as a trusted Islamic banking partner.
He said the new commodity hedging products gave corporate clients access to tailored risk-management solutions that could help them respond to changing market conditions.
The bank also continued its strategic partnership with FC Barcelona through the Emirates Islamic Barça Cashback Card. The product is designed to bring customers closer to the football club while rewarding their everyday spending.
Support for the UAE’s small and medium-sized enterprise ecosystem remained another priority. Emirates Islamic said its latest business banking campaign helped more than 40,000 SMEs strengthen resilience, pursue growth and contribute to national economic development.
The bank was also named Middle East’s Best for Client Service at the Euromoney Private Banking Awards 2026, recognizing its customer service and digitally enabled banking experience.
Wajid said Emirates Islamic remained positioned for sustainable growth and would use its financial strength to expand its Islamic banking leadership, improve customer experiences and create lasting value for customers, shareholders and the wider community.
Earlier results compared
Emirates Islamic entered 2026 after reporting record profit before tax of AED2.2 billion during the first half of 2025. Net profit for that period reached AED1.863 billion after increasing 12 percent year on year.
Total income stood at AED2.937 billion in the first half of 2025, while expenses reached AED892 million. The bank’s net profit margin was higher at 3.74 percent and its cost-to-income ratio stood at 30.4 percent.
Its balance sheet was also smaller. Total assets reached AED138 billion, customer financing stood at AED80 billion and customer deposits totaled AED97.4 billion. Current and savings accounts represented 65.5 percent of deposits.
The non-performing financing ratio was 2.8 percent, compared with 2.5 percent in the latest period, indicating an improvement in the proportion of impaired financing. However, coverage eased from 159.9 percent to 157.5 percent.
Capital ratios also moderated as the balance sheet expanded. The Common Equity Tier 1 ratio declined from 17.4 percent in June 2025 to 14.8 percent in June 2026, while the capital adequacy ratio moved from 18.5 percent to 15.9 percent.
Quarterly momentum continues
The half-year figures extend the balance sheet growth reported in the first quarter of 2026. At the end of March, total assets stood at AED149 billion, financing at AED94 billion and deposits at AED109 billion.
This means assets added AED4.8 billion between the end of March and June, while financing increased by another AED3 billion and deposits rose by AED1.6 billion.
Operating profit had increased 7 percent year on year to AED1.1 billion during the first quarter. The first-half operating result of AED2.2 billion suggests the bank sustained its operating momentum during the second quarter.
The financing-to-deposit ratio rose from 86 percent at the end of March to 88 percent at the end of June as financing expanded more quickly than deposits. Current and savings accounts accounted for 66 percent of deposits in the first quarter before easing slightly to 65 percent at the half-year stage.
The non-performing financing ratio remained unchanged at 2.5 percent, while coverage increased from 153.2 percent to 157.5 percent.
Islamic banking growth
The results were published during a period of continued expansion across the UAE’s Islamic banking market. Dubai Islamic Bank, the country’s largest Islamic lender by assets, reported that net financing assets increased 7 percent to AED281 billion during the first half of 2026.
Dubai Islamic Bank’s customer deposits reached AED327 billion and total assets rose to AED423 billion. Its non-performing financing ratio improved to 2.4 percent, according to its first-half results.
Sharjah Islamic Bank also reported balance sheet expansion, with total assets reaching AED94.5 billion and customer financing increasing 9.5 percent to AED49.9 billion during the period. Customer deposits rose 6.6 percent to AED59.4 billion.
The performances indicate that demand for Shariah-compliant financing remained resilient across retail, corporate and institutional banking despite regional economic uncertainty.
