Sharjah Islamic Bank’s profit rises 24%

Sharjah, UAE — The net profit of Sharjah Islamic Bank (SIB) jumped 24 percent in the first nine months of 2022 reaching  AED 568.6 million ($155 million), compared to AED 458.0 million ($125 million)  for the same period last year. 

Operating profit before provisions rose by 11.9 percent, amounting to AED 730.3 million ($198 million) for the 3rd quarter of 2022, compared to AED 652.9  million ($178 million) for the same period the previous year. 

The SIB recorded impairment provisions of AED 161.7 million ($44 million), compared to AED 194.8 million ($53 million) during the last period, a decrease of AED 33.1 million or 17 percent.

Net income on financing and investment products increased by 9.0 percent, equivalent to AED 72.8 million, to reach AED 885.0 million at the end of September 2022.

General and administrative expenses amount to AED 420.5 million at the end of September 2022, compared to AED 405.9 million for the same period in 2021; a marginal increase of AED 14.6 million or 3.6 percent. 

The SIB’s balance sheet stabilised at AED 54.6 billion compared to AED 55.0 million at the end of 2021, marking a marginal decrease of AED 361.9 million or 0.7 percent.

The bank has maintained strong liquidity amounting to AED 11.7 billion, at a rate of 21.5 percent of the total assets, compared to AED 14.3 billion, or 26.1 percent of the total assets at the end of the previous year.

The SIB continues to diversify its financing portfolio in various sectors as the total customer financings increased by AED 1.6 billion or 5.5 percent to reach AED 30.6 billion, compared to AED 29.0 billion as of December 31, 2021, following a prudent credit policy that considers the broader global economic and political challenges.

Investment in Islamic financing to customer deposits ratio stands at a strong 84.7 percent and is in line with management’s strategic objectives.

The bank’s customer deposits reached AED 36.1 billion, compared to AED 38.5 million, a decrease of AED 2.3 billion or 6.1 percent.

The SIB has a solid capital base, as the total shareholders’ equity at the end of September 2022 amounted to AED 7.6 billion, representing 14.0 percent of the Bank’s total assets. Thus, the bank maintained a high capital adequacy ratio in accordance with Basel III at 20.6 percent.

The rate of return on average assets and average equity increased significantly, at 1.38 percent and 9.89 percent annualised, respectively, compared to 0.95 percent and 6.7 percent at the end of the previous year.