Emirates Islamic Bank Agrees to Sell Its Remaining Shares to Emirates NBD

Emirates Islamic Bank (EIB) has agreed to sell its remaining shares to its main owner, Emirates NBD, as stated in a filing to the Dubai Financial Market (DFM) on Wednesday.

Buyout Offer

Emirates Islamic’s board has decided to recommend the buyout offer to its shareholders. This decision was made after financial advisor KPMG completed a valuation of the bank.

Currently, Emirates NBD owns 99.89% of Emirates Islamic, which is about 5.42 billion shares.

Emirates NBD plans to buy the remaining shares at $3.23 (AED 11.95) per share.

The offer also includes removing Emirates Islamic’s shares from the stock market and registering the bought shares under Emirates NBD’s name.

Financial Performance

In 2024, Emirates Islamic made a profit of $760 million (AED 2.8 billion), which is 32.5% more than the previous year. Its total revenue increased to $1.5 billion (AED 5.4 billion), up from $1.3 billion (AED 4.8 billion) in 2023.

Customer deposits also grew by 25.2% to $20.9 billion (AED 76.8 billion), according to the bank’s earnings report.

Emirates NBD reported a 7% increase in its 2024 net profit, reaching $6.3 billion (AED 23 billion). This growth came from higher income and the bank’s focus on digital banking and expanding its business sources.

Emirates NBD’s total income went up by 3% to $12 billion (AED 44.1 billion), thanks to a 10% increase in loans and stable, low-cost funding.

Share Performance

As of 2:31 pm AST on Wednesday, Emirates NBD’s shares fell by 2.9% to $5.45 (AED 20). Emirates Islamic’s shares stayed the same at $3.25 (AED 11.95).