Sharjah, UAE–The Sharjah Islamic Bank (SIB) registered robust growth, achieving a 31 percent surge in net profits to $229.13 million in 2023, compared to $177.26 million in 2022.
Operating profits also witnessed a 23 percent rise, reaching $554 million for 2023, up from $435 million in the previous year.
The net income resulting from financing and investment products witnessed a significant increase of 20 percent to reach $408 million, an increase of $65.24 million compared to the same period of the previous year in 2022, when it reached $326 million.
Similarly, there was a commendable growth of 23 percent in net fees, commissions, and other income, reaching $75.01million for the fiscal year 2023, in contrast to $61 million reported for the same period in 2022.
Noteworthy, however, is the enhancement of cost efficiency ratios through strategic policy measures, resulting in a notable improvement from 38 percent in the previous year to the current 35 percent. This highlights the Bank’s commitment to prudent cost management practices.
In terms of SIB’s risk management approach, the Bank has fortified its provisions, resulting in a reported impairment provision of $119.53 million with an increase of 26.4 percent, compared to the previous year’s provision of $94.59 million.
The SIB’s statement of financial position indicates a notable 11 percent increase in total assets, reaching $17.94 billion as of 31st December 2023, compared to $16.09 billion on 31st December 2022.
Furthermore, the financing-to-deposits ratio, a key indicator of liquidity strength and stability, achieved a commendable 73 percent. These figures collectively underscore the Bank’s sound financial footing and effective liquidity management.
Sharjah Islamic Bank boasts a robust capital base, with total shareholders’ equity reaching $2.20 billion as of 31st December 2023, constituting 12 percent of the Bank’s total assets. This translates to a commendable capital adequacy ratio of 18.87 percent in accordance with Basel III standards.
The SIB has demonstrated enhanced profitability, with a notable improvement in the rate of return on average assets and average equity. These metrics stand at 1.36 and 10.81 percent, respectively, compared to 1.14 and 8.49 percent in the preceding year.
The Sharjah Islamic Bank’s board of directors has proposed a 10 percent cash dividend, subject to approval at the upcoming general assembly meeting. This reflects the Bank’s commitment to delivering value to its shareholders.