Sharjah Islamic Bank (SIB) recorded an increase of 29.6 percent in the net profit, which amounted to AED458 million ($124 million) for the nine months ended 30 September 2021, compared to AED 353 million for the same period in 2020.
The bank also reported an increase in operating profits by 29.3 percent, which reached AED 652.9 million for the nine months of 2021, compared to AED 504.8 million for the same period in the previous year.
In a statement, the bank said that despite the partial recovery from the repercussions of the Coronavirus pandemic, the bank continued its hedging policy to face the challenges resulting from the operational conditions that the global economy is still going through.
Consequently, the bank has reported an increase of AED 43.5 million, or 28.7 percent, in the net impairment provisions, which has increased to AED 194.8 million for the period ended 30 September 2021, compared to AED 151.4 million for the previous period.
“The growth of the bank’s net profit indicates strong performance across all the business units of the bank,” the statement said.
The net income from financing and investment products increased by 16.3 percent, or AED 113.9 million, to reach AED 812.3 million for the nine months of 2021, compared to AED 698.4 million for the same period of 2020. Net fees, commissions and other income increased by 17.6 percent to reach AED 246.5 million, compared to AED 209.6 million for the same period of 2020.
The statement of financial position of the Bank showed an increase in total assets by 1.7 percent to reach AED 54.5 billion as of 30 September 2021, compared to AED 53.6 billion as of 31 December 2020.
Sukuk payable decreased by AED 1.8 billion and stands at AED 3.7 billion as of 30 September 2021 as against AED 5.5 billion as of 31 December 2020, due to the repayment of $500 million in the third quarter through the bank’s own sources, evidencing strong liquidity, it said.
The bank’s board has approved a proposal to allow foreign investors to trade in 40 percent of the bank’s shares, provided that it is put to a vote in the next general assembly meeting.