Emirates Islamic Bank Annual Report 2016

Transcription

1. ANNUAL REPORT 2016
3. In the name of Allah , The Merciful, The Very Merciful
4. CEO H AD ' s OMFeFsI sC aE g e
5. Emirates Islamic Bank (Public Joint Stock Company) Head Office 3rd Floor, Building 16, Dubai Health Care City, Dubai Tel.: +97 1 4 3160336 Fax: +97 1 4 3582659 P.O. Box: 6564, Dubai, United Arab Emirates emiratesislamic.ae Consolidated Financial Statements As at 31 December 2016
7. His Highness Sheikh Khalifa Bin Zayed Al Nahyan President of the United Arab Emirates
9. His Highness Sheikh Mohammed Bin Rashid Al Maktoum Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai
10. C o n te n t s
11. Chairman ’s Message 15 CEO’s Message 19 Corporate Social Responsibility 23 List of District Branches 26 List of Offsite ATMs 28
12. We seek out and try new things for growth 11
13. INNOVATION 12
14. OUR VISION To be the leading provider of high standard Shari ’a-compliant innovative financial products, quality service and superior value for our customers, shareholders, employees and the community.
15. OUR MISSION Providing innovative and high standard financial products and services governed by Islamic Shari’a provision to enrich the society.
16. C H A I R M AN ´ S M E SSAG E 15
17. Hesham Abdulla Al Qassim Chairman of Emirates Islamic Foresight and planning are crucial to economic success , and the United Arab Emirates (UAE) has clearly set an example for other nations to follow. UAE’s economic diversification policies, under the direction of our wise leadership, have enabled the country to record continued growth and position itself as one of the best performing economies across the region. Emirates Islamic is proud to partner the nation in this journey of growth, reporting positive financial results for 2016. Despite global and regional economic challenges, Emirates Islamic reported robust growth, with a year on year increase in total income. The Bank continued to deliver on its commitment of a customer-first experience, resulting in a 5 per cent increase in deposits and a greater demand for our product and service offerings with total assets increasing by 11 per cent. Cost control measures taken have resulted in a total costs decrease over the last three quarters of 2016. Emirates Islamic has always attracted strong interest from international and local investors. Our record breaking US$ 750 million 5-year Sukuk in May was three times oversubscribed and was followed by an equally successful tap issuance of US$ 250 million in August. The Bank also successfully completed a Rights issue for AED 1.5 billion, providing solid capitalization to support our growth over the coming years. With a stronger balance sheet and a focused medium term strategy, we aim to cement our position as a leader in the nation’s Islamic banking sector. We have noted genuine growth in demand for Islamic banking in the country with increasing awareness about the ethical nature of Shari’a-compliant products. Emirates Islamic will continue to lead the way with a single-minded focus on innovation in the development of products and services and in delivering these across our various customer segments. The UAE’s President His Highness Sheikh Khalifa bin Zayed Al Nahyan has declared 2017 as the Year of Giving. Since our inception in 2004, Emirates Islamic has been at the forefront in providing support to the less fortunate in the community. Through the Emirates Islamic charity fund, we will continue our support to various humanitarian causes, and also to inspire and motivate other organisations and individuals to extend their support to worthy causes, which will eventually lead to a better and happier society. I would like to thank our Board of Directors, the CEO and all Emirates Islamic employees for their contribution to the Bank’s performance in 2016. I am also grateful to our customers and shareholders for their support in our success and look forward to greater achievements in 2017. 16
18. We strive to exceed customer expectations and help them realise their dreams 17
19. CUSTOMER FIRST 18
20. CEO 's Message 19
21. Jamal Bin Ghalaita CEO , Emirates Islamic I am pleased to report the 2016 financial results for Emirates Islamic, on the back of our achievements in product and service innovation. In a significant year for the Bank, we demonstrated resilience in the face of challenging markets to achieve sound results and continue to play a leading role in the growth of Islamic banking in the UAE. For the year ending 31 December, 2016, we reported a growth of 3% in total income (net of customers’ share of profit and distribution to Sukuk holders) amounting to AED 2.5 billion compared to AED 2.4 billion in 2015. Financing and investing receivables grew by 6% to AED 36.3 billion and customer deposits grew by 5% to AED 41.1 billion. Our focused approach to improve our liabilities mix led to a significant increase in current account and savings account balances which now represent 67% of our total customer deposits. The Bank declared a net profit of AED 106 million for the year ended 31 December, 2016. Investor confidence in Emirates Islamic remained high as Fitch affirmed our Long-Term Issuer Default Rating (LT IDR) of ‘A+’ with a Stable Outlook, Short-Term IDR (ST IDR) of 'F1', and a Viability Rating (VR) at 'bb-' for the second consecutive year. The rating agency also affirmed the Bank’s Support Rating of '1'. In 2016, we remained committed to driving innovation in Islamic banking, delivering industry-leading products and services across our retail and wholesale customer base. We also invested in state-of-the-art technology to launch our new core banking system, aimed at providing our customers with superior customer service and the best banking experience. Our thought leadership initiative, the ISLAMIC BANKING INDEX by EMIRATES ISLAMIC also gained momentum this year showing a positive increase in penetration, perception, knowledge and intention of UAE consumers when it comes to Shari’a compliant banking, indicating that public acceptance, awareness and demand for Islamic banking in the UAE is increasing. Going forward, we remain focused on organic growth and increased market share by serving the evolving needs of our individual, commercial and corporate customers. Our efforts to advance excellence in Islamic banking also saw us win industry accolades, including Innovator in Islamic Finance by Global Finance magazine for EI trade, the world’s first of its kind Shari’a-compliant online Trade Finance and Supply Chain platform and Fastest Growing Bank – UAE at the Banker Middle East Industry Awards 2016. In conclusion, I would like to express my sincere gratitude to our Chairman and Board of Directors who continue to lead and guide us on the path to further growth. I would also like to thank all the employees of Emirates Islamic for their hard work and contribution in the Bank’s performance in 2016, as we look ahead to another successful year, Insha’Allah. 20
22. Our vision is limitless and we work together to make it a reality
23. AMBITION
24. C orpor a te Soci a l R e s po n s ibility 23
25. At Emirates Islamic , we continuously work on supporting the community as we believe that in order to bring a sustainable change, communities must be economically and socially empowered. This commitment reflects our Corporate Social Responsibility strategy and can be seen in the way we run our organization, the inclusive and supportive workplace we create for our employees, the responsible products and services we offer our customers, and the impact we make in helping the local economy thrive. In line with this belief and values, Emirates Islamic set up the ‘Emirates Islamic Charity Fund’ in 2016 to provide financial aid under several main areas, especially food, shelter, health, education and social welfare. In 2016 alone, Emirates Islamic has distributed over AED 50 million to various charitable causes including Emirates Red Crescent Society, Dar Al Ber Society, Beit Al Khair, Dubai Charity Association, Fujairah Welfare Assocation and more. In healthcare, Emirates Islamic has disbursed funds towards medical and rehabilitation equipment to government and privately run institutions including Ministry of Health, Ajman Club for disabled and Al Ihsan Medical Complex. The Bank has also extended charitable aid to the police departments in Dubai, Ajman, Sharjah and Ras Al Khaimah to improve prison facilities, upgrade the prisons’ pharmaceutical and medical equipment and help support prisoners to pay off their Diyya (financial compensation for victims’ families). Moreover, our employees play an important part in implementing our Corporate Social Responsibility strategy by devoting their time, knowledge and experience to charitable institutions and organizations. Emirates Islamic has set up an optional “Monthly Automatic Salary Deduction” programme whereby employees can choose to dedicate any amount they want for a noble cause. The Bank collaborated with Beit Al Khair to launch “EI Charity Car”, with employees helping in the distribution of food boxes to the less fortunate across the UAE. Over 500 Emirates Islamic employees also participated in a number of events including a large response to a blood donation drive, visits to Dubai Autism Centre, Dubai Hospital, Latifa Hospital Thalassemia Centre, and many more. Innovation was also part of Emirates Islamic’s 2016 Corporate Social Responsibility. During Ramadan, the Bank launched the unique “Bring Happiness” campaign on its social media, aimed to connect members of the community in need with those who can offer their support - the initiative was launched to coincide with Zayed Humanitarian Work Day, and honor the memory of Sheikh Zayed bin Sultan Al Nahyan, the founding father of the United Arab Emirates. During the same period, Emirates Islamic announced a collaboration with Careem, the region’s leading chauffeur-driven car booking service, to provide complimentary rides to the mosque during the holy month of Ramadan. Emirates Islamic also partnered with a number of organizations to promote fitness and a healthy lifestyle for the nation’s youth and introduced the ‘Emirates Islamic National School League Football’ – an annual interschool football league championship, that witnessed over 250 games and over 90 schools participate. 24
26. 25
27. Emirates Islamic Bank (PJSC) List of District Branches Branch Name Branch Location P. O. Box Branch Telephone Number Abu Dhabi & Al Ain Abu Dhabi Main Branch Sheikh Rashid Bin Saeed Al Maktoum Street Abu Dhabi Corniche Corniche Street, nearest landmark - Ministry of Energy Abu Dhabi Mall Abu Dhabi Mall, ground floor, next to Yateem Optician Al Ain Main Branch Jawazat Street, near Sheikha Salama Mosque Al Ain Souq Oud Al Touba Street, nearest landmark - NBQ Street No.26, intersecting with Zayed 1st Street, Al Khalidiya Arabian Centre, Show Rooms No. 14, 15 & 16, Al Mutaradh Area, Al Ain Unit G-3, Ground Floor, Al Wahda City 1, Commercial Tower, Hazaa Bin Zayed Street Sanaiyya - Khalid Ibn Sultan Street. Nearest landmark: Next to Etisalat - Beside LuLu Al Khalidiya Al Mutaradh Al Wahda Tower Boutik Mall Khalifa City Villa No. 104, Sector SE-02, Khalifa City 'A' Tourist Club Al Zarooni Building, Al Meena Street 10 46077 Abu Dhabi 46077 Abu Dhabi 46077 Abu Dhabi 15095 Al Ain 02-4464000 02-6160888 02-6145194 03-7511159 15095 Al Ain 108330 Abu Dhabi 03-7511112 15095 Al Ain 03-7559840 46077 Abu Dhabi 15095 Al Ain 46077 Abu Dhabi 46077 Abu Dhabi 02-6134710 02-6134713 03-7034590 02-6134711 02-6448820 Dubai - Bur Dubai Al Barsha Mall Al Barsha Mall, Barsha 6564 Dubai 04-3733211 Al Diyafah 6564 Dubai 04-3733205 6564 Dubai 04-3550993 6564 Dubai 04-6093802 6564 Dubai 04-3597888 6564 Dubai 04-2803846 Dubai Health Care City Diyafa Street, opp. Dune Centre, Satwa Al Khaleej Centre, Al Mankhool Road, next to Choithram, opp. Ramada Hotel Al Mina Road, Bur Dubai, Al Hudaiba Bank Street, next to Sun & Sand Sports Shop, Atrium Centre Dragon Mart Complex II - Dubai – Hatta Road, International City, Ground Floor – Zone GB Building No.16, ground floor, Dubai Health Care City 6564 Dubai 04-3834726 Dubai Investment Park Dubai Investment Park Building 6564 Dubai 04-8855005 Dubai Mall Dubai Mall, ground floor 6564 Dubai 04-3828010 Dubai Silicon Oasis SIT Tower, ground floor, Dubai Silicon Oasis Al Souq Al Kabeer Area, Al Falah Street. Toronto Building, Bur Dubai 6564 Dubai 04-3733054 6564 Dubai 04-3192200 6564 Dubai 04-8879443 6564 Dubai 04-3733208 6564 Dubai 04-3597888 6564 Dubai 04-3733209 Al Khaleej Centre Al Mina Road Bur Dubai Dragon Mart Dubai Souq DWC Al Maktoum Airport DWC Al Maktoum Airport, Departure Hall Pay Office & FX Counter Oud Metha Eleganza Apartments, Showroom No. 2 & 3 Port Rashid Pay Office & New Cruise Terminal, Zone 4, Ground floor FX Counter Villa A, Jumeirah Beach Road, Umm Suqeim near Jumeirah Beach Park, Umm Suqeim Dubai - Deira Al Garhoud Sunshine Building, next to Al Tayer Showroom, Garhoud 6564 Dubai 04-2822454 Al Mamzar Arabila Building, ground level, next to Grand Service Station 6564 Dubai 04-2622444 Al Mizher Aswaq Centre, near Al Mizhar Mall, Al Mizhar 1 6564 Dubai 04-2845799 Al Riqqa Omar Bin Al Khattab Street, near Ibis Hotel, Riqqa, Deira 6564 Dubai 04-2248442 Al Twar Dubai Municipality Building, ground level, opp Al Twar Centre 6564 Dubai 04-7023880 Al Twar Centre Al Nahda Road, near Al Twar Centre 6564 Dubai 04-2575983 Baniyas Baniyas Road, Al Sabkha Area, Al Sabkha Building 6564 Dubai 04-2023900 26
28. Emirates Islamic Bank (PJSC) List of District Branches (continued) Dubai - Deira (continued) Business Village Business Village Building, Block A, ground level, next to Clock Tower, Deira 6564 Dubai 04-2367878 Dubai Fesitval City Dubai Festival Centre, opp Ikea, next to Hyper Panda, Level 1 6564 Dubai 04-3733201 6564 Dubai 04-3733504 6564 Dubai 04-2215301/ 04-2212321 6564 Dubai 04-2131660 Hamriya Souq Land Department Main Branch Shop no. 007, Central Al Hamriya Market Building, Hor Al Anz East, near Union Coop, Abu Hail Road Dubai Land Dept Building, ground level, Baniyas Street, opp Dubai Chamber of Commerce Al Gurg Tower 2, Riggat Al Buteen, near Hilton Creeek Hotel Mirdif City Centre Level 1, Mirdif City Centre 6564 Dubai 04-3733055 Nad Al Hamar Bel Rumaitha Club Building, Showroooms no. S-8 & S-9, Al Rebat Street 6564 Dubai 04-2845999 Al Quoz Khalifa Bin Dismal Building, Show Room no. 1, Al Quoz 3 Area 6564 Dubai 04-3809952 Convention Centre World Trade Centre, Exhibition Hall 1 6564 Dubai 04-3830020 Jebel Ali Banking Complex, Jafza Main Gate, Jebel Ali 6564 Dubai 04-8811133 Jebel Ali Jafza Jumeirah Beach Residence Jumeirah Lakes Towers Gate No.4, Jafza 16, Jebel Ali 6564 Dubai 04-8872555 Amwaj 3 6564 Dubai 04-4233777 Almas Tower, ground floor 6564 Dubai 04-3733225 Media City Business Central Towers, Showroom No.16, Dubai Media City, Sheikh Zayed Road 6564 Dubai 04-4380200 Sheikh Zayed Road Al Wasl Tower, Showroom 2 6564 Dubai 04-3312020 Sheikh Zayed Road 2 Al Kharbash Building 6564 Dubai 04-3438882/ 04-3439192 Sheikh Khalifa Bin Zayed Road 6688 Ajman 06-5064012 Al Nadiyah Ali Abdulla Al Nuaimi Building, Showroom No. 2, Al Nadiyah 5198 07-2359482 Ras Al Khaimah Fujairah Near Choithram Supermarket, Sheikh Hamad Bin Abdulla Street 1472 Fujairah Halawan Wasit Street, Sheikh Ismail Building Khorfakkan Corniche Street Mega Mall Mega Mall, ground floor Muwaileh Dr. Faisal Al Qasimi Building, Showrooms No. 6 & 7, Maleeha Street, near National Paints Industrial Area no. 15 Nasseriya My City Center, ground floor, Shop No. G012, Nasseriya Qasimiyah Al Otaiba Building, King Abdul Aziz Road, Sharjah Ras Al Khaimah Emirates Islamic Bank Tower, ground floor, Al Muntaser Street, Al Nakheel Area Sahara Centre Al Nahda Street, Sahara Centre, Basement, Unit No. B2 + B3 5169 Sharjah Dubai - New Dubai Sharjah & Northern Emirates Ajman Sharjah Sharjah Corniche Sharjah Court Pay Office Al Bourj Avenue, Al Arooba Bank Street, near Rolla Square Ground Floor, EIB Tower, Buheira Corniche, Al Majaz Area Al Meena Street Sharjah Crystal Plaza Crystal Plaza Tower, Sharjah Buhairah Corniche Road Umm Al Quwain Near Umm Al Quwain Broadcasting Station, King Faisal Road 27 67621 Sharjah 18969 Khorfakkan 5169 Sharjah 5169 Sharjah 09-2235553 06-5064009 09-2371122 06-5064022 06-5358855 67622 06-5064018 Sharjah 67622 06-5720002 Sharjah 5198 07-2260044 Ras Al Khaimah 06-5255532 5169 Sharjah 06-5064015 5169 Sharjah 06-5064008 5169 Sharjah 06-5282248 60666 06-5064001 Sharjah 315 06-5064020 Umm Al Quwain
29. Emirates Islamic Bank (PJSC) List of OFFSITE ATMS Abu Dhabi Dubai (Continues) Al Raha Mall Dubai Taxi ATM Awqaf Abu Dhabi  Dubai World Central Capital Mall Emaar Boulevard Carrefour, Abu Dhabi Mall Emaar Business Park Deerfields Mall Emirates Living, The Lakes Khalidiyah Mall Etihad Mall The Galleria Mall Yas Mall Golden Mile Hyatt Regency Dubai Creek Heights Ajman Ibn Battuta Mall Ajman Police Karama Centre City Center, Ajman Lulu Hypermarket, Al Qusais Union Coop, Ajman Mall of Emirates, near Home Center Al Ain Mall of the Emirates, Metro link Al Ain Mall Marina Mall Al Jimi Mall Mega Mart, Al Qusais Bawadi Mall, near Carrefour Meiaisam City Centre Bawadi Mall, near Style Studio Mirdiff City Centre Hili Mall My City Centre, Al Barsha Dubai Nawaes Al Madina - Al Nahda Al Ahli Driving school RITAJ, Dubai Investment Real Estate Company Al Bustan Center Saudi German Hospital Al Ghurair Center Sheikh Ahmed Mosque Al Mulla Plaza Shindagha Carrefour American Hospital, Oud Metha Sky Gardens DIFC Aswaaq Supermarket, Umm Sequim Souk Al Wasl Bin Sougat Center, Airport Road The Beach, JBR City Walk 2 Union Coop, Jumeirah Deira City Center, Etisalat Union Coop, Karama Deira City Center, near New Look Union Coop, Rashidya Dubai Airport Terminal 1 Dubai Airport Terminal 2 Union Co-operative - Al Hamriya Union Co-operative - Al Twar Dubai Airport Terminal 3 Union Co-operative Al Wasl Dubai Cruise Port and Customs Union Co-operative - Umm Suqeim Dubai Driving Centre Union Co-operative- Al Aweer Dubai Health Care City, Building 16 Fujairah Dubai Immigration Fujairah Drive Through (outside the Branch) Dubai Mall, Atrium Souq Khalifa Khamis Matar Al Kaabi Dubai Mall, Food court Ras Al Khaimah Dubai Mall, Ice Rink Al Murjan Resort Dubai Mall, Kidzania RAK Municipality Dubai Mall, near Costa Café Sharjah Dubai Marina Mall Al Saqr Business Centre Dubai Marina Walk Ansar Mall Dubai Taxi, Jebel Ali Mega Mall Dubai Wholesale Plaza Rolla Mall Dubai Women’s College Sahara Centre Dubai Municipality, Al Manara Centre Offsite Sharjah International Airport Dubai Police Head Quarters Sharjah Pay Office Dubai Port and Customs 28