Sharjah, UAE–Bank of Sharjah approved to increase its capital by $218 million during its Annual General Meeting.
This move is set to enhance the bank’s financial position and foster future growth. The strategic step involves issuing 800 million new shares at par.
Sharjah Asset Management, the investment arm of Sharjah Government, will be the primary beneficiary of this capital increase, raising its shareholding in the bank from 17.16 per cent to approximately 40 per cent.
This development demonstrates the strong and continued partnership between Bank of Sharjah and the government of Sharjah. The bank has already obtained the approval of the capital increase from the Central Bank of the United Arab Emirates (CBUAE) and the Securities and Commodities Authority (SCA).
“This significant capital injection is a testament to the unwavering confidence our strategic shareholder places in our vision and future endeavors,” said Sheikh Mohammed bin Saud Al Qasimi, Chairman of Bank of Sharjah.
He added: “With this boost, we are now empowered to accelerate growth, enrich customer experiences, reward shareholders, and make a profound impact on the community at large.”
“The capital increase will bring the Bank’s total capital to $816 million, significantly bolstering its financial position and enhancing its ability to pursue new opportunities and investments,” he said.
The bank posted net profit for the year ended December 31, 2022 of AED245 million ($66.71 million), up from AED225 million in 2021.
Total comprehensive income reached AED220 million, while total equity increased by 7% to AED3.42 billion.
The bank maintained a solid capital position, with a regulatory capital adequacy ratio of 11.51% and a Tier 1 capital ratio of 10.33%.
Customers’ deposits grew by 5% to AED27,773 million, highlighting the bank’s ability to attract and maintain a solid and loyal customer base.
Furthermore, total equity rose by 7% to AED3.42 billion, showcasing the bank’s strong capital position and commitment to a sustainable growth strategy.