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Monday, 8/August/2022

Sharjah Islamic Bank’s net profit grew by 30% in the first nine months

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On Saturday, Sharjah Islamic Bank said that compared to Dh353.4 million in the same time last year, its nine-month net profit increased by 29.6 percent to Dh458 million this year.

About the foreign investors

According to a vote at the next general assembly meeting, the bank’s board of directors accepted a suggestion. Therefore, the bank will enable international investors to trade in 40% of the bank’s shares.

Fighting the Coronavirus challanges

After a partial revival from the effects of the Covid-19 epidemic, the bank still maintained its hedging policy. As a consequence, the bank reported a Dh43.5 million or 28.7 percent rise in net impairment provisions for the period ended September 30, 2021. In the preceding period, this increase climbed to Dh194.8 million from Dh151.4 million.

Strong performance in such a short time

The increase in the bank’s net profit reflects good success across all of the lender’s business areas.

Net revenue from finance and investment products grew by 16.3 percent, or Dh113.9 million, to Dh812.3 million in the first nine months of 2021, up from Dh698.4 million in the same period in 2020. Although net fees, commissions, and other income grew by 17.6% to Dh246.5 million from Dh209.6 million simultaneous in 2020.

The Bank’s statement of financial condition revealed a 1.7% rise in total assets to Dh54.5 billion as of September 30, 2021, compared to Dh53.6 billion as of December 31, 2020.

However, the bank continues to maintain high profitability ratios to be ready for eventually future changes.

Sharjah Islamic Bank has a solid capital foundation, with total shareholders’ equity of Dh7.7 billion at the end of September 2021, representing 14.1% of the bank’s total assets.

In conclusion, the bank’s profitability has improved noticeably. The rate of return on average assets and average equity has also increased considerably, to 1.13 percent and 7.95 percent annualized, respectively, from 0.81 percent and 5.35 percent at the end of the preceding quarter.

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