Sharjah, UAE — Sharjah Islamic Bank’s net profit surpassed AED 1 billion ($272 million) for the first time in its history, reflecting a 24.5 percent increase.
The bank’s net profit before tax increased by 36.5 percent, reaching AED1.15 billion. This strong performance reflects SIB’s ability to expand and diversify its operations, capitalizing on opportunities in both local and global financial markets, it said in a statement.
These results confirm the success of SIB’s strategies in achieving sustainable and continuous growth, while maintaining a steadfast commitment to providing added value to its shareholders. They also highlight the SIB’s prominent role in supporting financial and economic growth in the country.
In terms of financial performance, the total profit from financing to customers and financial institutions grew by 20.6 percent, reaching AED3.7 billion in 2024. Additionally, income after deducting profits for depositors and Sukuk holders rose by 4 percent, reaching AED1.50 billion compared to AED1.45 billion in 2023.
In terms of income diversification, the Bank saw a significant increase of 45.3 percent in fee and commission income, reaching AED400.4 million, compared to AED275.5 million in the previous year. As a result total operating income grew by 10.4 percent, reaching AED2.2 billion compared to AED2.0 billion in 2023.
Despite a 12.2 percent increase in general and administrative expenses to AED779.1 million in 2024, the Bank maintained stability in its cost-to-income ratio, which stood at 35.7 percent compared to 35.2 percent in 2023, reflecting high operational efficiency.
Regarding risk management, the Bank enhanced its financial strength through impairment provisions and the revaluation of properties amounting to AED253.2 million, a decrease of 42.3 percent compared to AED439.0 million in 2023.
On the balance sheet front, the Bank recorded a notable 20.2 percent increase in total assets, reaching AED79.2 billion as of 31st December 2024. The Bank also maintained a liquidity ratio of 21.6 percent, equivalent to AED17.1 billion. The financing -to-deposit ratio stood at 72.8 percent, reinforcing the Bank’s ability to support its future growth plans and ensure financial stability.
The SIB’s customer financing portfolio grew by 14.1 percent, reaching AED37.7 billion by the end of 2024, driven by a diversified approach across various economic sectors. Customer deposits also increased by 14.5 percent, rising by AED6.6 billion to reach AED51.8 billion, compared to AED45.2 billion in 2023.
Sharjah Islamic Bank enjoys a strong capital base, with total shareholders’ equity amounting to AED8.3 billion as of 31st December 2024. The Bank’s capital adequacy ratio stood at an impressive 16.18 percent after the proposed dividend distribution and 17.09 percent before the proposed distribution, in accordance with Basel III standards. Additionally, the return on average shareholders’ equity increased to 12.76 percent from 10.68 percent in 2023.
As part of its commitment to sustainable dividend distributions, the Bank’s board of directors proposed an increase in the cash dividend distribution to 15 percent, compared to 10 percent in the previous year, subject to shareholder approval at the upcoming General Assembly meeting.